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CSH depends on 'white knight`

By Iain Scott, ITWeb group consulting editor
Johannesburg, 01 Oct 2004

CS Holdings (CSH), which has admitted it is technically insolvent, now depends on Bytes Technology Group (BTG) to acquire it.

This week CSH published its results for the year to 30 June, showing a net loss of R164.54 million against a restated prior-year loss of R25.21 million. A headline loss of 41.97c a share compared with a previous loss of 5.6c a share.

At the end of the year the group had a negative net asset value per share of 5.61c, as well as a negative net tangible asset value of 14.8c a share.

"It is clear from the results and financial position of the group that the group`s future is dependent upon stability and certainty returning to the group," says acting CEO Dave Vink.

"The group is dependent upon the ongoing support of its bankers and this would not be possible in an independent scenario without the backing of a 'white knight`.

"Due to the nature of the group`s business and CS Holdings` perceived instability, the future prospects and growth of the group are dependent on the BTG intention to make an offer being successfully concluded."

BTG in August indicated a firm intention to make an offer at 15c per CSH share. Last month undertakings were given by more than 86% of CSH shareholders to accept the offer.

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