BESA shareholders approve proposed Scheme of Arrangement by JSE

February 6, 2009 at 12:00 AM EST

6 February 2009 – Shareholders of the Bond Exchange of South Africa Limited (BESA) have voted in favour of the proposed scheme of arrangement put forward by the JSE Limited (JSE) on 10 December 2008 to acquire 100% ownership in BESA. The proposed merger of the respective exchanges was ratified at a shareholder scheme meeting this morning, with 100% of shareholders voting, confirming their support for the transaction at R125 per BESA share (over 75% is required).

Following the outcome of the scheme meeting, Garth Greubel, BESA’s chief executive said, “The outcome of today’s meeting confirms our shareholders’ wishes for the proposed merger. Whilst we now focus on working through procedures with the competition authorities, we continue to operate BESA on a business as usual basis, focusing on our ongoing delivery to bond market participants, including issuers, trading participants and investors.”

In terms of the salient dates and times outlined in the circular to BESA shareholders on 20 January, it is hoped that decisions from all regulators will be forthcoming by early May 2009. Should the competition authorities approve the merger of BESA and the JSE, a court hearing to sanction the scheme will follow.

Nicky Newton-King, Deputy CEO of the JSE concludes, “BESA shareholders have validated our belief that by integrating the two businesses, South Africa will enjoy stronger capital markets, an essential part of the economy. Deep and liquid financial markets help mobilise savings, allocate capital and manage risk. Should our regulators approve the transaction, we look forward to working with the market to build a more vibrant and globally competitive exchange together.”

Ends

 

For further information please contact:

Bond Exchange of South Africa Limited
Garth Greubel: CEO
garthg@bondexchange.co.za
(+27 11) 215 4110 / 4000 (switchboard)
(+27) 83 602 5475

Amber Barnes: Communications
amberb@bondexchange.co.za
(+27) 83 309 2681          

 

JSE Limited
Nicky Newton King: Deputy CEO
nickyn@jse.co.za
(+27 11)520 7010
(+27) 82 902 6095

Jennifer Cohen
FDBeachhead
Jennifer.Cohen@fd.com
(+27 11) 214 2401
(+27) 82 468 6469