MASTER PLASTICS LIMITED - Disposal of Property

Disposal of Property

MASTER PLASTICS LIMITED
Incorporated in the Republic of South Africa
(Registration number 2016/323930/06)
Share code: MAP ISIN: ZAE000242921
(“Master Plastics” or “the Company”)

DISPOSAL OF PROPERTY

1.   INTRODUCTION

     Shareholders are advised that Master Plastics has entered into an agreement with Shaw Almex Africa
     Proprietary Limited (“Shaw Almex”) in terms of which the Company will dispose of the property
     located at 22 Yaron Avenue, Lea Glen, Roodepoort, Gauteng (“the Property”) to Shaw Almex
     (“the Transaction”).

2.   TRANSACTION RATIONALE

     The Property, which has been vacant for the last year, consists of 5,961 square meters of factory,
     warehouse and office space and is excess to the requirements of the Company. The Property is
     classified as held for sale in the financial accounts of the Company.

3.   DETAILS OF SHAW ALMEX

     Shaw Almex is involved in the design and manufacture of conveyor belt vulcanizers, splicing tools and
     repair materials for conveyor belts. The ultimate beneficial shareholder of Shaw Almex is Shaw Almex
     Limited, head-quartered in Ontario, Canada.

4.   PURCHASE CONSIDERATION AND ANTICIPATED EFFECTIVE DATE

     The purchase consideration of R12 000 000 (excluding VAT) will be settled in cash upon registration
     of the transfer of ownership in The Deeds Office which is expected to occur on or about Friday,
     30 November 2018.

5.   FINANCIAL INFORMATION

     The Property has a carrying value of R7 646 312 in the financial accounts of the Company. During the
     financial year ended 28 February 2018, the Property had an attributable turnover of R382 375 and
     loss before interest, taxation, depreciation and amortisation of R709 801.

6.   CONDITIONS PRECEDENT

     The Transaction is subject to the raising of a mortgage bond by Shaw Almex over the Property.

7.   PROCEEDS OF THE TRANSACTION

     The proceeds from the Transaction will be applied to reducing the existing borrowings of the Company.

8.   CATEGORISATION OF THE TRANSACTION

     The Transaction is categorised as a category 2 transaction in terms of the JSE Listings Requirements
     and accordingly no shareholder approval is required.


Johannesburg
25 September 2018

Designated Adviser
Merchantec Capital

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