RBA HOLDINGS LIMITED - Boards' response to business rescue applications and further cautionary announcements

Boards' response to business rescue applications and further cautionary announcements

RBA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1999/009701/06)
(Share Code: RBA ISIN Code: ZAE000199642)
(“RBA” or “the Company”)

BOARDS’ RESPONSE TO BUSINESS RESCUE APPLICATIONS AND FURTHER 
CAUTIONARY ANNOUNCEMENT
 
Shareholders are referred to the announcement released on SENS 
on 9 February 2016.

The Boards of Directors of the Company and RBA Developments 
(JHB)(Pty) Ltd (the “Boards”) have resolved not to oppose the 
applications, and to actively support the business rescue process.  
The resolutions of the Boards not to oppose the applications do 
not mean that the Boards fully agree with the contents of the 
applications and they reserve their right to respond in due course 
as the situation may require.

In deciding to the actively support the business rescue process 
the Boards took inter alia the following into consideration:

1. The applications had already been lodged on 8 February 2016 and 
a number of key risks had been triggered by the applications which, 
if not adequately managed, could cause the business rescue process 
to fail.

2. The negative impact to various stakeholders including clients, 
employees, suppliers, creditors, shareholders and other participants 
in the affordable housing industry should RBA be wound up;

3. Both HIFSA and RBA believe that RBA has a workable business model 
that produces a quality product and that this is a business that should 
continue post restructuring the group; and

4. HIFSA has provided support to the business over the past 14 months 
and has indicated its willingness (subject to reasonability and obtaining 
the necessary approvals) to provide post-commencement finance.

RBA has met with key stakeholders and to date the outcomes of these 
meetings have generally been positive in terms of limiting the potential 
negative impact of the applications on RBA’s operations.

Shareholders are advised to continue to exercise caution when dealing in 
the Company’s securities until a further announcement is made.

18 February 2016
Braamfontein

Designated Adviser
Exchange Sponsors

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