ONELOGIX GROUP LIMITED - Disposal of minority interest in DriveRisk Proprietary Limited and withdrawal of cautionary announcement

Disposal of minority interest in DriveRisk Proprietary Limited and withdrawal of cautionary announcement

ONELOGIX GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/004519/06)
JSE share code: OLG  ISIN: ZAE000026399
(“OneLogix” or “the company”)


DISPOSAL OF MINORITY INTEREST IN DRIVERISK PROPRIETARY LIMITED AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT


1.   INTRODUCTION, SALIENT TERMS AND CONDITIONS PRECEDENT

     Shareholders are referred to the cautionary announcement dated 9 May 2017, and the renewal of cautionary announcements
     dated 22 May 2017, 4 July 2017, 16 August 2017 and 23 August 2017, and are advised that OneLogix, through its wholly-
     owned subsidiary OneLogix Proprietary Limited (“OPL”), have on 29 August 2017, successfully concluded a repurchase
     agreement and a subscription and loan agreement (collectively, the “agreements”) with DriveRisk Proprietary Limited
     (“DriveRisk”), Blue Crane Trading 134 Proprietary Limited, K2017198162 (South Africa) Proprietary Limited, Spirit
     Capital Proprietary Limited, Griffen Investment Services Proprietary Limited and Louis Benjamin Swart (collectively, 
     the “consortium”) to dispose of its 49% minority interest (the “investment”) in DriveRisk (the “disposal”).

     The effective date of the disposal was 30 August 2017 (the “effective date’).

     In terms of the agreements the subscribers subscribed for shares in DriveRisk on the effective date pursuant to which
     DriveRisk repurchased the 490 DriveRisk shares from OPL.

     OneLogix received cash proceeds of R65.4 million from DriveRisk which was settled by DriveRisk way of a share
     repurchase and a final cash dividend on the effective date.

     All the conditions precedent to the agreements have been fulfilled.

2.   RATIONALE FOR THE DISPOSAL AND USE OF PROCEEDS

     The complexity caused by OneLogix being a competitor to the expanding DriveRisk customer base had become increasingly
     evident and an exit from the business made sense to both OneLogix and DriveRisk. The disposal is to a 51% black owned
     consortium, which furthermore enhances the BEE ownership components of both OneLogix and DriveRisk’s BBBEE
     scorecards.

     The proceeds of the disposal will be used by OneLogix to fund growth opportunities.

3.   VALUE OF AND PROFITS ATTRIBUTABLE TO THE INVESTMENT

     The carrying value of the investment (which is also the net asset value as there are no attributable liabilities) is R28.3 million.
     The profits attributable to the investment for the financial year ended 31 May 2017 was R 14.2 million.

4.   CATEGORISATION OF THE DISPOSAL

     The disposal is categorised as a Category 2 transaction in terms of the JSE Listings Requirements and does not require
     OneLogix shareholder approval.

5.   WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

     OneLogix shareholders are referred to the previous cautionary announcements, the last of which was dated 23 August 2017,
     and are advised that following the release of this announcement, caution is no longer required to be exercised by OneLogix
     shareholders when dealing in their shares.

1 September 2017


Sponsor
Java Capital

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