BUILDMAX LIMITED - Cautionary Announcement regarding a proposed bee transaction

Cautionary Announcement regarding a proposed bee transaction

BUILDMAX LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1995/012209/06)                     
Share Code: BDM
ISIN Code: ZAE000011250                                        
("Buildmax" or the Company)                                                     

CAUTIONARY ANNOUNCEMENT REGARDING A PROPOSED BEE TRANSACTION

1. Introduction

Buildmax is fully committed to the advancement of broad-based black economic empowerment (BEE) within the mining 
industry and is governed by the terms of the Codes of Good Practice, issued under the Broad-Based Black Economic 
Empowerment Act, 2003 (the Codes), as well as the requirements of the Broad-Based Socio-Economic Empowerment Charter 
for the South African Mining and Minerals Industry (the Mining Charter).

Transformation and BEE shareholding is critical to the Companys ability to continue to build its business and has 
become a fundamental requirement in order to conduct business in the industries that the company serves. 

The Companys board of directors and management are pleased to announce the signing of a Memorandum of Understanding 
on 26 November 2012 to introduce additional BEE shareholding into the broader Buildmax businesses (Proposed BEE Transaction). 
The Proposed BEE Transaction is limited to the mining services business unit of Buildmax incorporating Diesel Power Opencast 
Mining (Pty) Limited, Buildmax Equipment and Services (Pty) Limited and Buildmax Equipment (Pty) Limited.

The final structure of the Proposed BEE Transaction will result in the Company attaining an effective BEE shareholding in 
excess of 25% in terms of the Codes and the Mining Charter. 

The Proposed BEE Transaction will provide a number of benefits to the Company namely:
- An overall enhancement in the Companys BEE ownership credentials;
- Creating sustainable BEE ownership through a long-term operational partnership with a new entrant who has 
  significant industry experience;
- The enhancement and transformation of the executive management team; and
- The introduction of a broad-based trust targeted at increasing the skills and economic participation of black women.

Buildmax Limited is cognisant of the proposed amendments to the B-BEEE Codes of Good Practice, which are currently open 
for public comment. The proposed amendments were considered in formulating the Proposed BEE Transaction. The Company continues 
to monitor developments, particularly as it impacts the Companys compliance in this regard.

Subject to the requisite approvals being obtained, it is envisaged that the proposed BEE Transaction will be fully implemented 
by 28 February 2013.

2. Cautionary Announcement

The Proposed BEE Transaction, if successfully concluded, may have an impact on the price of the Companys securities. 
Accordingly, shareholders are advised to exercise caution when dealing in the Companys securities until a further 
announcement providing additional details regarding the Proposed BEE Transaction is released.

Benoni
26 November 2012

Sponsor
QuestCo (Pty) Limited





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