Dynamic Cables` hiatus ends

By Iain Scott, ITWeb group consulting editor

Johannesburg, 13 Sept 2005

The Dynamic Cables RSA share closed 200% up yesterday on the first day of trade after a two-and-a-half-year suspension.

However, the lifting of the suspension yesterday did not draw much traffic, with just 100 000 shares - 0.2% of the issued shares - changing hands.

The share was suspended in February 2002 at the request of the company`s directors when it became apparent that there had been "irregularities" in certain transactions from 1997 to 1999.

The suspension was granted to give the board time to investigate the irregularities and the resulting tainted shares.

The company has told shareholders that it isolated the potential irregularities to the 1997 deal between Dynamic (then Log-Tek) and various vendors involving the acquisition by Log-Tek of Conlog. The payment included the allotment and issue to the vendors of 18 million new Dynamic Cables shares.

Legal proceedings and discussions with certain of the vendors resulted in settlements in terms of which about 9.76 million Dynamic Cables shares, the bulk of which are tainted, have been returned to be dealt with by the company as it sees fit.

The company says in a notice to shareholders that it was necessary to validate and regularise the invalid allotment and issue of the tainted shares so the returned shares could be dealt with for the benefit of all shareholders and for the remaining shares to be validated in the hands of their current holders.

The High Court (Cape Provincial Division) granted an order in this regard last month. The company says in the shareholder notice that it asked the JSE to lift the suspension, and this was granted with effect from this morning.

"Dynamic Cables is currently investigating which action could be most appropriately taken in connection with the returned Dynamic shares for the benefit of all shareholders," the notice adds.

Acting chairman Shaun Rai had not returned calls by the time of publication.