MERCEDES-BENZ SOUTH AFRICA LIMITED - Disposal Of 100% Of Daimler Trucks And Buses Southern Africa Proprietary Limited - MEC

Disposal Of 100% Of Daimler Trucks And Buses Southern Africa Proprietary Limited - MEC

     Mercedes-Benz South Africa Limited
     (Incorporated in the Republic of South Africa) (Registration No. 1962/000271/06)
     Bond Issuer code: MEC
     (“Mercedes-Benz” or “the Issuer”)




     DISPOSAL OF 100% OF DAIMLER TRUCKS AND BUSES SOUTHERN AFRICA PROPRIETARY LIMITED



1.   Introduction

     The Board of Directors of Mercedes-Benz South Africa Ltd (MBSA) are pleased to announce that the
     company has entered into a share purchase agreement (SPA) to dispose of 100% of the issued ordinary
     shares of Daimler Trucks and Buses Southern Africa Proprietary Limited (DTBSA) to Daimler Truck AG,
     a subsidiary of Daimler AG, MBSA’s ultimate parent company.



2.   Rationale for the Transaction and application of proceeds

     To foster value creation for Daimler AG shareholders and to unlock the full potential of the company
     in July 2018, the Daimler AG Board of Management and Supervisory Board approved the Group's new
     corporate structure, with the intention to divide the company into three legally distinct entities:
     Mercedes-Benz AG for the Cars and Vans divisions, Daimler Truck AG for the Trucks and Buses divisions
     and Daimler Mobility AG for Daimler Financial Services AG. The creation of three of strong and
     independent companies would simplify the corporate structure, provide entrepreneurial freedom for
     each entity whilst strengthening its customer focus.



3.   About Daimler Trucks and Buses Southern Africa

     DTBSA operates in the truck and buses market for our customer’s benefit by providing optimal
     experience, value-added and tailored applications and services, as well as attractive Daimler brands
     in Mercedes-Benz trucks, Mercedes-Benz Buses, FUSO and Freightliner (parts & services). DTBSA also
     assembles Mercedes-Benz trucks and buses, as well as FUSO trucks from its East London
     manufacturing plant.



4.   Salient terms of the Transaction

     The effective date of the Transaction is 1 January 2021. The SPA contains undertakings, warranties
     and indemnities that are customary for a transaction of this nature.




     12 February 2021
     Debt Sponsor
     The Standard Bank of South Africa

Date: 12-02-2021 05:00:00
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