AFRICAN EQUITY EMPOWERMENT INVESTMENTS LIMITED - Termination of Discussions Regarding the Subscription of Shares by AYO In Bowwood

Termination of Discussions Regarding the Subscription of Shares by AYO In Bowwood

AFRICAN EQUITY EMPOWERMENT
INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1996/006093/06
Share code: AEE
ISIN: ZAE000195731
("AEEI" or “the Company”)

TERMINATION OF DISCUSSIONS REGARDING THE SUBSCRIPTION OF SHARES BY AYO IN BOWWOOD

1. Introduction

   Shareholders are referred to the announcements released on SENS on 1 June 2020, 11 August
   2020 and 21 August 2020. Using the definitions therein, Shareholders are hereby advised that
   discussions between SGT and Bowwood have been mutually terminated.

2. Reason for termination of discussions

   Shareholders are referred to the announcements released on SENS on 19 May 2015 and 26
   November 2015 (collectively the “SGD Acquisition Announcements”).

   Using the definitions within the SGD Acquisition Announcements, Shareholders were advised of
   the acquisition by Bowwood of 25% + 1 share in SGD from SAAB in 2015.

   As set out in the SGD Acquisition Announcements, SAAB was issued with a call option at the time
   of acquisition in 2015, which allowed it to repurchase the Subject Shares from Bowwood at the
   higher of an amount equal to the redemption consideration in respect of the IBL Preference Shares
   and the fair market value of the Subject Shares. As the IBL Preference Shares have been
   redeemed, should SAAB exercise such call option, it will be exercisable at the market value of the
   Subject Shares at the expiry of the 60-month period stipulated in the shareholders agreement i.e.
   from 1 October 2020.

   SAAB has provided correspondence to Bowwood that indicates that it intends to exercise the call
   option when the 60-month period in the shareholders agreement has lapsed.

   Consequently, SGT and Bowwood have mutually terminated negotiations to allow for the process
   with SAAB to be concluded.

   As a result of the termination of the above negotiations, the process to prepare a Circular to obtain
   approval from Shareholders to approve the Transaction is no longer required.

Cape Town

22 September 2020

Joint Sponsor
Vunani Sponsors

Joint Sponsor
Merchantec Capital

Date: 22-09-2020 07:30:00
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