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From Egoli

May 3, 2000
Firstly, Fairfax Trust (FXF) intends to change its name to CPH Investment Corp. The relationship between the FXJ share price and FXF NTA is shown in the table at the bottom of the page.

While we believe current FXF unitholders are likely to benefit from taking up their entitlement to new FXF units, the risks of this investment should be remembered.

These include: Information (CPH is unlikely to divulge more than minimum requirements), Investment Strategy (asset investments contain a higher level of risk), Gearing, Control (unit holders are unlikely to be able to exert any real control), Primary interest of the investing vehicle, and Discount to NTA (most investment vehicles trade at a discount to NTA.

However, these risks are balanced by the expected value to be added by the investment strategies of the new management company, CPH.

As a reminder, the terms of the rights issue have been changed. The original terms were $760M to be raised at $1/unit. The current terms are for $500M to be raised at NTA (first instalment 50 cpu, second instalment depending on the NTA of FXF).

The relationship between the NTA of FXF and the share price of the underlying, FXJ, is shown here which may be of assistance in estimating how much the second instalment will be:

Share price of FXJ (CPS) 475 500 525

NTA of FXF (CPU) 68.7 74.1 79.4

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