Reunert, PSG part ways

Johannesburg, 06 Feb 2008

JSE-listed companies Reunert and PSG Group have decided to end their participation in joint venture Quince Capital Holdings.

In a joint statement to shareholders, the companies explained the move was due to international pressure on financial concerns.

"The sub-prime crisis has the potential of greatly increasing the cost of funding to Quince, necessitating exploring alternative ways of financing the business. Such evaluation of funding options has led the partners in Quince to conclude that it would be in the interest of shareholders to undo the joint venture," the companies said.

Reunert will acquire all the shares it does not already own in Quince for approximately R420 million. This is the original amount invested by the exiting shareholders, plus the retained profit attributable to these shareholders, for the period 2 May 2007 to 31 January 2008.

Additionally, PSG, Michiel le Roux and management will buy back their original investments previously sold to Quince. These include Quince Property Finance (previously ZS Rational) and Quince Scripfin.

The respective deals are still subject to the finalisation of formal agreements between the shareholders, as well as shareholder and regulatory approvals.