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CONSOLIDATED INFRASTRUCTURE GROUP LIMITED - Voluntary suspension in trading of CIG shares

Release Date: 25/11/2020 14:50
Code(s): CIL     PDF:  
Wrap Text
Voluntary suspension in trading of CIG shares

(Incorporated in the Republic of South Africa)
(Registration number 2007/004935/06)
JSE share code: CIL ISIN: ZAE000153888
(“CIG” or the “Company”)


Shareholders are referred to the announcements released on Tuesday, 3 November 2020 and Tuesday,
10 November 2020 wherein shareholders were advised that Consolidated Power Projects Proprietary
Limited (“Conco”) and CIG respectively had commenced voluntary business rescue proceedings
followed by an announcement that Petrus van den Steen and Martin du Toit Liebenberg have accepted
the appointment as joint business rescue practitioners (“BRPs”) to CIG and to Conco.

In light of these decisions, the Company applied to the JSE for the voluntary suspension of trading in
CIG shares in terms of paragraph 1.10 of the JSE Listings Requirements and this request has today been
approved by the JSE.

The Company believes that the suspension of the CIG shares is appropriate as there is, and will continue
to be, two levels of information in the market which the Company is not able to address via general
market announcements.

As a result of the voluntary business rescue proceedings and as required under the Companies Act 71
of 2008, the BRPs are required to engage and consult with various stakeholders, including creditors and
employees, but will also need to engage with lenders, guarantors, debtors and customers to ensure
continued support and payments for the underlying businesses. These engagements will occur on an
ongoing basis utilising non-public information in order to establish and finalise the most appropriate
course of action through the business rescue process that are in the best interests of all stakeholders. It
is not reasonable to assume that information provided during these engagements will remain
confidential, despite the best efforts of the BRPs.

In addition, investors that may have more knowledge (howsoever that knowledge was gained) and are
aware of this situation may likely trade in CIG shares to others who are less informed.

The Company does not wish to unnecessarily prejudice current shareholders by restricting their trading
ability, but this is outweighed by its desire to protect innocent participants trading on the market from
investing in shares with limited information, and particularly so in an environment such as business
rescue where rapid decisions are being made and many advisors, lenders, insurers and other parties are
demanding access to information in the absence of which they would withdraw the immediate financial
support for CIG and Conco.
The BRPs are aware of the requirement to publish price sensitive information timeously and will seek
to adhere to the JSE Listings Requirements, subject to their ability to do so. However, there may be
instances where such information is not published or only practically able to be published at a later.

25 November 2020

Java Capital

Date: 25-11-2020 02:50:00
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