| |
|
* Funds to meet
these capital commitments will be provided
from internal cash resources |
 |
49.3 |
Black economic
empowerment shareholding in the South African
group |
| |
|
Certain
of the shareholders of Alexander Forbes
Empowerment Holdings have an option to sell
their shares to Alexander Forbes Limited
once the deferred vendor finance has
been fully repaid or after seven years from
the effective date, whichever is the earlier,
but in any event, not before five
years from the effective date. The price
at which the shares may be sold will be
based on the same earnings before interest
and tax multiple applied at the effective
date of the transaction (being 5,8 times).
In such case, 50% of the sale consideration
will be deferred and will be payable in
two equal annual instalments on the first
and second anniversary of the effective
date of the sale.
Alexander Forbes Limited is entitled to
elect to pay for these shares by the issue
of new Alexander Forbes Limited shares,
in which case the multiple to be used in
calculating the sale consideration will
be that of Alexander Forbes Limited on the
effective date of the sale. |
| |
49.4 |
Multi-manager
investment subsidiary, Investment Solutions |
| |
|
The
share purchase arrangement between Investment
Solutions Holdings Limited (“ISH”)
and Stanlib Limited whereby ISH was to acquire
a shareholding in Stanlib Multi-manager
Limited, in exchange for shares in ISH,
with effect 31 March 2006, has been cancelled.
The two parties have instead agreed to an
extended five year management agreement
with effect from 1 April 2006. |
| |
49.5 |
Provision for
client settlements |
| |
|
Details
of the group’s commitment in respect
of provisions made for client settlements
are provided in the Directors’ Report
contained in these financial statements. |
| |
49.6 |
Defined
benefit pension fund in the United
Kingdom |
| |
|
A guarantee has been
provided for the past service deficit
funding included in the schedule of contributions
for the defined benefit pension
fund in the United Kingdom. This commitment
has been provided by Alexander Forbes Risk
Services Limited, the principal United Kingdom
risk services business, to Alexander Forbes
Group Services Limited, which has the primary
obligation in respect of the defined
benefit scheme. Both are subsidiaries
of Alexander Forbes Risk Services Holdings
Limited, and this guarantee does not extend
to any other group companies. |
