BoE unbundles, becomes publicly owned

CAPE TOWN -- The BoE Group yesterday announced the unbundling of BoE Limited by BoE Corporation, a capital reduction in BoE Limited and the unbundling of its RMBH shareholding.

The pyramid BoE Corporation will be dismantled and its listing terminated. BoE will become a publicly owned company with a spread of shareholders.

BoE Ltd said in a statement these transactions were intended to unlock the value in the share prices and to ensure that BoE Ltd was rated on the financial performance of its operations, without the dilutionary effect of excess capital and non-strategic investments.

Shareholders will receive a cash distribution of R1,00 per share on May 20. This will be funded by the realisation of shareholdings in Pepgro, NAIL and AMB and cash resources.

Further, the company has resolved to unbundle the RMBH shareholding to the shareholders of BoE Limited. Each BoE shareholder will receive 6,88 RMBH shares for every 100 BoE shares held in addition to the R1,00 cash distribution. At a price of R11,00 per RMBH share this would equate to approximately R0,75 per BoE share.

The strategy, which was outlined in the Group's Financial Statements for the year ended 30 September 1999, indicated that non-core investments would be dealt with prior to BoE's financial year-end on 30 September 2000.

Commenting on the capital structure of the group once these transactions had been effected, Phil Biden, the group chief executive, said: "BoE Bank Limited, as the major operating company within the Group, has capital and reserves in excess of R5 billion and a risk weighted capital adequacy ratio of 13%.

This capital is sufficient to allow for growth in banking business at a more than acceptable rate for the next two to three years, if not more. The bank is one of the best capitalised in the industry."

The remainder of the capital of the group was invested in its Asset Management, Insurance and International Operations, while retaining sufficient resources to allow for growth and for investment. -- Sapa