Iscor obtains Rand 388 million cost saving

Iscor obtains Rand 388 million cost saving

According to recent market reports, LNM Holdings has assisted Iscor in obtaining annual cost savings of Rand 388 million (approx. $60 million) as part of a business assistance agreement between the two companies. Under the scope of business assistance agreement, LNM provides Iscor with business assistance to achieve certain cost savings in consideration of Iscor shares over a three year period ending on December 31, 2004. With business assistance agreement, Iscor announced its cost savings as Rand 388 million for the year ending on June 30, 2003. As a result, this cost saving entitles LNM to a once off remuneration of Rand 613.3 million (approx. $95 million). Iscor and LNM have agreed on a cash settlement rather than renumerate LNM through the issue of Iscor's shares.