UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 20, 2004
Silverstar Holdings, Ltd.
(Exact name of registrant as specified in its charter)
Bermuda 0-27494 N/A
(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation) Identification No.)
Clarendon House, Church Street, Hamilton, HM CX, Bermuda
(Address of Principal Executive Offices with Zip Code)
Registrant's telephone number, including area code: (441) 295-1422
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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Item 7.01 Regulation FD Disclosure.
On December 20th, 2004, the Company issued the following press release:
Contact:
Clive Kabatznik
Silverstar Holdings
(561) 479-0040
clive@silverstarholdings.com
Silverstar Holdings Announces Early Repayment of Approximately $5.4
Million of its South African Note Receivable
Based on Current Exchange Rates Company Anticipates Realizing a Further Gain
for the Quarter in Excess of $500,000
BOCA RATON, FL- (MARKET WIRE)- December 20, 2004 - Silverstar Holdings, Ltd.
(Nasdaq:SSTR) reported today that it had entered into an agreement with Salwin
Investments (Pty) Ltd, for the early repayment of approximately $5.4 million of
the $8.5 million owed by Salwin to the Company. Under the terms of the
agreement, Salwin will continue to pledge an approximate 18% stake in First
Lifestyle Holdings as collateral for repayment of their remaining indebtedness.
Due to significant strengthening of the South African Rand against the US
dollar, and based on current exchange rates, the Company anticipates posting a
further realized gain of approximately $500,000 on this note during the current
quarter.
Clive Kabatznik, Chief Executive Officer of Silverstar Holdings, said: "The
early repayment of a significant portion of our South African notes receivable
comes at a propitious time. It enables us to capitalize on the significant
strengthening of the South African Rand over the past 24 months. Additionally,
over the past two-years, we have posted consistent unrealized foreign currency
gains; this transaction not only allows us to realize a significant portion of
these unrealized gains, but also reduces our foreign currency exposure going
forward.
Mr. Kabatznik continued, "At current exchange rates, our balance sheet will now
consist of approximately $6.4 million in cash, a further $3.9 million in notes
receivable with minimal debt at the corporate holding level. Our investment in
Magnolia Broadband is carried at a fairly conservative valuation and the
carrying value of Fantasy Sports is in line with its current operating results.
Our share price has traditionally traded at a discount to our net asset value
and this transaction reaffirms the quality of the Company's assets."
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Mr. Kabatznik concluded, "We continue to actively seek appropriate opportunities
to enhance our revenues and income both organically and through acquisitions.
Our increased cash balances will provide us with greater flexibility, in this
regard."
About Silverstar Holdings
Silverstar Holdings Ltd. is a publicly traded company, focusing on acquiring,
controlling positions in high growth subscription-based businesses that stand to
benefit from the economies of scale generated by Internet and other technology
related platforms. It currently owns Fantasy Sports, Inc., a leading provider of
fee based NASCAR-related and other fantasy sports games, as well as a stake in
Magnolia Broadband, a fab-less semiconductor company and innovator of radio
frequency (RF) solutions for the cellular industry.
The statements which are not historical facts contained in this press release
are forward-looking statements that involve certain risks and uncertainties,
including but not limited to risks associated with the uncertainty of future
financial results, additional financing requirements, development of new
products, regulatory approval processes, the impact of competitive products or
pricing, technological changes, the effect of economic conditions and other
uncertainties detailed in the company's filings with the Securities and Exchange
Commission.
# # #
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: December 21, 2004
SILVERSTAR HOLDINGS, LTD.
By: /s/ Clive Kabatznik
--------------------------------
Name: Clive Kabatznik
Title: CEO