ARGENT INDUSTRIAL LIMITED - Small related party transaction

Small related party transaction

Argent Industrial Limited
(Registration number 1993/002054/06)
(Incorporated in the Republic of South Africa)
Share Code: ART
ISIN: ZAE000019188
(“Argent” or “the Company” or “the Group”)

SMALL RELATED PARTY TRANSACTION

1.   Introduction

     Argent through its wholly-owned subsidiary GHL Properties
     (Pty) Limited (“GHL”) entered into a disposal agreement
     with NWN Automotive Precision Engineering (Pty) Limited
     (“NWN”) in terms of which GHL has agreed to dispose of a
     property that is an industrial factory (“the Disposal”)
     and is situated at, Portion 56 of Erf 534, Wadeville,
     Extension 2, Mullet Road, Durban (“the Property”).

2.   Rationale

     The rationale for the Disposal is that the Property is no
     longer considered to be a strategic asset to the Group and
     the Company will utilise the cash proceeds obtained from
     the Disposal to expand the Group’s other business
     ventures.

3.   Cash consideration and conditions precedent

     The cash consideration of R7,500,000 (seven million five
     hundred thousand rand) will be settled in full upon
     transfer of the Property.

     The Disposal is not subject to any conditions precedent.

4.   Effective date

     The effective date of the Disposal will be the transfer
     date of the Property into the name of NWN.

5.   Pro forma financial effects

     In terms of the JSE Listings Requirements (“Listings
     Requirements”), the financial effects of the Disposal are
     not significant and are below the reporting threshold.

6.   Categorisation and related party

     NWN is an associate of certain directors of Argent and is
     therefore defined as a related party as per paragraph
     10.1(b)(vii) of the Listing Requirements.
     Due to the size of the Disposal, the Disposal is
     classified as a small related party transaction.

7.   Independent registered valuer

     In terms of Section 10.4(f) of the Listings Requirements
     the Company has appointed Icon Valuations (Pty) Limited
     (“Icon”) as the independent registered valuer in order to
     provide an opinion on the fairness of the Disposal.

     Based on the valuation report the board has found the
     Disposal to be fair to shareholders.

     Icon’s valuation report will be available for inspection
     at Argent’s registered office, until 13 March 2013.


Umhlanga
12 February 2013
Sponsor: PSG Capital Proprietary Limited

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