Incorporated in the Republic of South Africa
Registration number 1919/006020/06
Share code: DTA ISIN: ZAE000132817
(“Delta” or “the Company”)
TRADING UPDATE: DISCONTINUATION OF OPERATIONS AND CAUTIONARY ANNOUNCEMENT
DISCONTINUATION OF OPERATIONS
The Company has during the last financial year conducted a detailed strategic review of the Company’s business and following those conclusions, and with the most recent reduction in supply arrangements to a North American customer, as announced on 24th January 2014 on the JSE Limited’s Stock Exchange News Service (“SENS”), the board has taken the decision, subject to approval by the Company’s shareholders, to discontinue operations in a phased and orderly manner during 2014 and to realise value for the Company's assets during 2014 and 2015.
Shareholders will receive a memorandum setting out in detail the rationale for the board’s decision. The memorandum will be distributed to shareholders during April 2014 together with the Notice of the Company's Annual General Meeting which is scheduled to be held during May 2014. The shareholders' vote to approve the board's decision will be proposed at the Annual General Meeting.
The board also has taken a decision to limit production at its Nelspruit operation, and expects to have one of the Company’s two EMD production lines idled by the end of March 2014.
A further trading update will be released on SENS as soon as the Company has reasonable certainty with regard to expected sales volumes and profitability for the six months ending 27 June 2014.
Shareholders are advised to exercise caution when dealing in the Company’s securities, until such time as the results of the Company’s Annual General Meeting are released.
5th March 2014
RAND MERCHANT BANK (A division of FirstRand Bank Limited)