10FY Arkle 2060

RNS Number:4036L
Genbel South Africa Ld
10 October 2001


                    GENBEL - OFFERS NOT ATTRACTIVE ENOUGH


                  Johannesburg - Wednesday October 10, 2001


Investment trust Genbel South Africa will remain in its current form for a
while longer.

Speaking after the company's annual general meeting held in Johannesburg
today, interim managing director Anton Botha said that the board was still
considering the company's future. In Genbel's annual report for the year to
June 30, shareholders were told that because of the introduction of capital
gains tax (CGT), an investment trust is no longer a competitive investment
product from a tax point of view. This led the board to examine ways of
restructuring Genbel that could include the realising of Genbel's assets.

At the time, the board said: "We have decided to reconsider Genbel's future as
an investment trust as soon as the possibility of realising Genbel's unlisted
investments, including its investment in Gensec NSA Equity Fund, and its
interest in Gensa Trading, together with the possibility of securing Genbel's
release from concomitant commitments, on an acceptable basis, can be
determined."

With any reconstruction the board's stated objective is to deliver maximum
value to shareholders either through alternatives such as an offer to purchase
the company, the liquidation of the company or other appropriate action. The
board has been advised that in the event of liquidation no secondary tax on
companies will be payable.

Today Mr Botha noted that although the board had received offers for Genbel's
unlisted investments, the directors do not believe they are sufficiently
attractive to recommend to shareholders. "We recognise that the sale of assets
in the current turbulent market conditions will not be easy but Genbel will
not accept anything less than a satisfactory deal for all shareholders. Aside
from the unlisted investment in private equity and the trading company, Genbel
has a diversified portfolio of shares."

In April the Genbel board appointed advisors to recommend future strategies
for the company in the light of the negative impact of CGT on investment
trusts and the persistent discount at which Genbel trades to its net asset
value. The board has reviewed a number of proposals in the past few months
but, according to Mr Botha, has not yet received a satisfactory offer.

Mr Botha gave an undertaking that as soon as an acceptable offer for the
company's assets was received, shareholders would be informed.


ends

Please note:

Genbel South Africa is South Africa's leading closed end investment trust with
a diversified portfolio of South African and international assets valued at
around R733-million.

The fund invests in carefully selected companies, which exhibit above average
long-term growth prospects. The company's objective is to achieve sustainable
capital growth over the long term by investing in companies expected to
produce superior returns.

The company strives to significantly outperform the JSE Financial and
Industrial Index over the longer term.

Genbel's performance is measured by its growth in net asset value and market
capitalisation. Income criteria are unreliable guides to performance as
earnings fluctuate between reporting periods

ends


ISSUED BY:               PENELOPE GRACIE INVESTOR RELATIONS

ON BEHALF OF:            GENBEL SOUTH AFRICA

FURTHER INFORMATION:     PENELOPE GRACIE

CONTACT:                 OFFICE     +27 (11) 447-3301
                         HOME       +27 (11) 442-6674
                         MOBILE     082-55-77-444



London Secretaries:

Project Consultants Ltd
Walnut House
Walnut Gardens
Claydon
Banbury
Oxon
OX17 1NA

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