Approval given for FrontRange delisting

By Paul Vecchiatto, ITWeb Cape Town correspondent

Johannesburg, 22 Dec 2005

FrontRange`s delisting is to go ahead following approval given at the shareholder`s meeting held yesterday.

The company is in the process of disposing of its US-based FrontRange Solutions - best known for its GoldMine customer relationship management software - as well as Cayo Communications and FrontRange Solutions SA.

The buyer, Ferrari Holdings, is paying $185.2 million. The final amount to be distributed to shareholders will depend on exchange rates.

In terms of the resolutions approved at yesterday`s meeting, the entire issued share capital and claims on loan account against FrontRange SA will be disposed.

Approval was also given for the disposal of the Cayo Communications` stock, authorisation for the company to procure, through Ixchange International Holdings, the sale by Ixchange CRM International Holdings of its interests in FrontRange Solutions, and approval of the ordinary resolution that will enable the company to make a distribution in rands out of its distributable reserves and as a return of capital.

This means FrontRange`s shares will be suspended by the Johannesburg Stock Exchange on 30 December, with the delisting set to take place on 10 January.

Further details of the distribution will be released in a Stock Exchange News Service announcement on 10 January. FrontRange has said this will be equal to the aggregate of $0.93, less secondary tax on companies. This equates to about R5.54, based on an exchange rate of R6.54/$.