SEBATA HOLDINGS LIMITED - Acquisition of Investment Property

Acquisition of Investment Property

Sebata Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1998/003821/06)
Share code: SEB  ISIN: ZAE000260493
(“Sebata” or “the Company”)


ACQUISITION OF INVESTMENT PROPERTY


1. INTRODUCTION

   Shareholders are advised that Sebata (“the Purchaser”) entered into a property sale agreement
   (“the Agreement”) with Reunert Limited (“the Seller”) on 13 June 2022 (“Signature Date”), to
   acquire the investment property Valley View Industrial Park (“Investment Property”), for a
   purchase price of R32 000 000 (“Purchase Price”), as further set out below (“the Acquisition”).

2. THE ACQUISITION

   2.1 Details of the Investment Property

        The Investment Property consists of Section 1 of Sectional Plan Number SS 37/2006 in the
        scheme known as Valley View Industrial Park situated in New Germany, Kwa-Zulu Natal. The
        building comprises two floors of 2,969m2 each. The floor space is split between administration
        offices and large open spaces for production lines.

   2.2 Details pertaining to the Seller

        The Seller, Reunert Limited, is a listed company on the Johannesburg Stock Exchange and
        the A2X under share code RLO. The Seller is not a related party to Sebata.

   2.3 Rationale for the Acquisition

        The Acquisition was made to consolidate numerous leases held by the Company’s investee
        companies. The consolidation of these leases has allowed for a significant cost saving through
        synergies and elimination of redundancies in the numerous leases. The Acquisition has also
        enabled production by the investee companies to be housed under one roof instead of being
        split across numerous facilities.

   2.4 Suspensive conditions and effective date

        All suspensive conditions in respect of the Acquisition have been fulfilled.

        The effective date of the Acquisition was 27 June 2022, being the fulfilment date of all
        suspensive conditions.

        The registration of transfer of the Investment Property into the name of the Company was
        effected on 24 August 2022.

        The Agreement contains warranties and undertakings which are standard for an acquisition
        of this nature.

    2.5 Purchase Price

        The purchase price payable in cash by the Company to the Seller for the Investment Property
        is an amount of R32 million, payable as follows:

        2.5.1 on Signature Date, a non-refundable deposit in the amount of R9.6 million (inclusive of
              tax) to Stepstone & Wylie Attorneys (the “Conveyancers”) (which deposit has been
              settled); and

         2.5.2 by no later than 27 June 2022, the balance of the Purchase Price, in the amount of
               R27.2 million (inclusive of tax), to the Conveyancers, until the transfer date whereupon
               it shall be paid to the Seller (which balance has been settled).

         Other than normal occupational rental, registration and transfer costs typical to the nature of
         the transaction, no costs have been incurred by Sebata in relation to the Acquisition.

3. FINANCIAL INFORMATION

   The value of the net asset value and loss after tax attributable to the Acquisition was R33.596
   million and R1.596 million, respectively as at 30 September 2022, as extracted from the audited
   annual financial statements of Reunert Limited.

   The financial statements were prepared in accordance with the International Financial Reporting
   Standards and the Companies Act, 2008 (Act 71 of 2008), as amended.

4. CLASSIFICATION OF THE DISPOSAL

   The Acquisition is categorised as a Category 2 transaction in terms of the Listings Requirements of
   the JSE Limited.


Johannesburg
30 August 2023

Sponsor
Merchantec Capital

Date: 30-08-2023 04:45:00
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