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Afe - Aeci Limited - Further Cautionary Announcement: Acquisition By Aeci Of

Release Date: 24/11/2011 13:00:01      Code(s): AFE AFEP
AFE - AECI Limited - Further cautionary announcement:  Acquisition by AECI of   
the KTH Consortium`s 25,1% interest in AECI`s explosives business in exchange   
for ordinary shares in AECI                                                     
AECI LIMITED                                                                    
(Incorporated in the Republic of South Africa)                                  
(Registration number 1924/002590/06)                                            
JSE ordinary share code: AFE                                                    
JSE preference share code: AFEP                                                 
JSE ordinary share ISIN: ZAE000000220                                           
JSE preference share ISIN: ZAE000000238                                         
(""AECI")                                                                       
FURTHER CAUTIONARY ANNOUNCEMENT:  ACQUISITION BY AECI OF THE KTH CONSORTIUM`S   
25,1% INTEREST IN AECI`S EXPLOSIVES BUSINESS IN EXCHANGE FOR ORDINARY SHARES IN 
AECI                                                                            
Shareholders of AECI ("Shareholders") are referred to the cautionary            
announcement dated Tuesday, 26 July 2011 and the further cautionary             
announcements dated Tuesday, 6 September 2011 and Thursday, 13 October 2011,    
respectively (collectively, "the Cautionary Announcements") relating to the     
proposed acquisition by AECI of the effective 25,1% equity interest in AECI`s   
explosives business, AEL Mining Services Limited, held by an empowerment        
consortium led by Kagiso Tiso Holdings Proprietary Limited and the Tiso AEL     
Development Trust, in exchange for the issue of 4 678 667 new AECI ordinary     
shares  ("the proposed KTH Transaction").                                       
The proposed KTH Transaction, a small related party transaction in terms of the 
Listings Requirements of the JSE Limited ("JSE"), remains subject to the        
fulfilment of a number of conditions precedent, including, but not limited to:  
*    the execution of the definitive transaction agreements;                    
*    obtaining all necessary lender waivers and consents;                       
*    receiving a positive fairness opinion from Ernst & Young Advisory Services 
    Limited, the Independent Professional Expert;                               
*    the approval of the fairness opinion by the JSE; and                       
*    to the extent necessary, all other regulatory consents and approvals.      
It is expected that the proposed KTH Transaction will be implemented by no later
than Friday, 30 December 2011, once all conditions precedent have been          
fulfilled.                                                                      
Accordingly, Shareholders are advised to continue exercising caution when       
dealing in AECI shares until a further announcement in this regard is made.     
Woodmead                                                                        
24 November 2011                                                                
Investment bank and        Attorneys and tax   Reporting accountants and        
transaction sponsor        advisers            auditors                         
                                                                                
The Standard Bank of       Webber Wentzel      KPMG Inc.                        
South Africa Limited                                                            
Independent professional                       Corporate sponsor                
expert                                                                          
                                              Rand Merchant Bank (a             
Ernst & Young Advisory                         division of FirstRand            
Services Limited                               Bank Limited)                    
Date: 24/11/2011 13:00:01 Supplied by www.sharenet.co.za                     
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