25 Aug 2005
JCI Limited (JCI) announced today that it had reached an agreement with Investec Bank for provision of a R460-million loan facility.
The facility will enable JCI to follow its rights in terms of the Western Areas Limited rights offer. In addition, should other shareholders not take up their rights, it will allow JCI to take up additional shares to a maximum R250-million. It will also allow the company to settle surety obligations of approximately R75-million awarded in the High Court to Mr. Peter Skeat of Benoryn Investments.
It has also been confirmed that Brett Kebble will step down as chief executive and be replaced by Peter Gray, a former head of Societe Generale SA and Tlotlisa Securities.
In other board changes Roger Kebble, John Stratton and Charles Cornwall have resigned. Chris Lamprecht has been appointed JCI’s chief financial officer following Hennie Buitendag’s resignation.
Gray said that his long experience in international banking would stand him in good stead. “ To be frank, I am looking forward to the challenge. JCI has a number of assets that appear to be under valued.”
He said the Investec loan was well secured with shares and other assets that would be placed in a special purpose vehicle to be constituted as a wholly owned subsidiary of JCI.
“Our first priority as new management is to tackle the delayed accounts for both Randgold & Exploration and JCI and to have the JSE suspensions lifted as soon as possible.”