ERBACON INVESTMENT HOLDINGS LIMITED - Notice of business rescue application

Notice of business rescue application

Erbacon Investment Holdings Limited
Incorporated in the Republic of South Africa
(Registration number: 2007/014490/06)
Share code: ERB
ISIN: ZAE000111571
(“Erbacon” or “the Company”)

NOTICE OF APPLICATION TO COMMENCE BUSINESS RESCUE PROCEEDINGS OF
MAJOR OPERATING SUBSIDIARY AND SUSPENSION OF LISTING OF HOLDING
COMPANY

1.   Application to Commence with Business Rescue Proceedings

1.1.   The board of directors of Erbacon (“the Erbacon Board”) was
       informed by the board of directors of its major operating
       subsidiary,   Civcon   Construction   Proprietary   Limited
       (“Civcon” or “the subsidiary”) (“the Civcon Board”), that
       Civcon is currently financially distressed, as contemplated
       in Chapter 6 of the Companies Act, 2008, as amended (“the
       Companies Act”), due to the delay in award of contracts as
       well as a delay in payment from its major debtors.

1.2.   The Civcon Board is, however, of the view that there
       appears to be a reasonable prospect of rescuing the
       subsidiary from its current financial difficulties and has
       accordingly started proceedings to place Civcon into
       business rescue and supervision and are preparing a
       comprehensive business rescue plan.

1.3.   The   resolution  was   filed   with   the  Companies   and
       Intellectual Property Commission on 20 June 2013. The
       filing date is therefore the effective date of commencement
       of the business rescue proceedings as contemplated in terms
       of section 132(1)(a)(i) of the Companies Act.

1.4.   Accordingly, Civcon is now formally under business rescue.
       The business rescue practitioners function will be to
       supervise Civcon to assist it in devising and implementing
       an effective business rescue plan.

1.5.   The business rescue process will allow Civcon to continue
       to operate while it prepares and implements a restructuring
       plan to enable it to operate more efficiently while aiming
       to return to profitability.

1.6.   Shareholders are further advised that Erbacon Construction
       (Pty) Limited, although being a smaller subsidiary than
       Civcon, has also been placed under business rescue and will
       undergo the same process as detailed above.

2.   Suspension of Listing

2.1.   Shareholders are therefore advised that due to Civcon being
       the greater part of Erbacon’s undertaking and commencing
       with the business rescue proceedings, Erbacon’s shares have
       been suspended in terms of section 1.9(a)(iii) of the JSE
       Listings Requirements until further notice.


Johannesburg
20 June 2013

Designated Adviser:   PSG Capital Proprietary Limited

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