CSG HOLDINGS LIMITED - Category 1 Disposal Announcement Additional Information and Withdrawal Of Cautionary Announcement

Category 1 Disposal Announcement Additional Information and Withdrawal Of Cautionary Announcement

CSG HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2006/011359/06)
Share code: CSG
ISIN: ZAE000184438
(“the Company”)

CATEGORY 1 DISPOSAL ANNOUNCEMENT ADDITIONAL INFORMATION AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

1. INTRODUCTION

1.1.     Shareholders are referred to the Company’s cautionary announcement released on
         SENS on 22 June 2020 and the announcement released on SENS on 26 June 2020
         (“Disposal Announcement”) in terms of which the Company advised shareholders
         that on 25 June 2020, the Company, through its wholly-owned subsidiary, 7 Arrows
         Security Proprietary Limited with registration number: 2015/208415/07 (“7 Arrows”),
         entered into an agreement with Fidelity ADT Monitoring Proprietary Limited, with
         registration number: 1996/017820/07 (“Purchaser”), in terms of which the Company
         will sell:

1.1.1.       a certain specified part of the armed response and monitoring business of 7
             Arrows, which encompasses the provision of armed response and monitoring
             services to clients of 7 Arrows; and

1.1.2.       a certain specified part of the residential guarding business of 7 Arrows, which
             encompasses the provisions of residential guarding services to clients of 7
             Arrows,

         to the Purchaser, for a disposal consideration of R65,850,000 (sixty-five million eighty
         hundred and fifty thousand Rand) (“Disposal”).

1.2.     Capitalised terms used below and that are not otherwise defined, bear the meanings
         ascribed to them in the Disposal Announcement.

1.3.     The Disposal Announcement did not include certain financial information applicable
         to the Disposal and accordingly shareholders were advised to continue to exercise
         caution when dealing in the Company’s securities until a further announcement
         regarding the financial information has been made. The aforementioned financial
         information applicable to the Disposal is set out below in this announcement.

2. FINANCIAL INFORMATION

2.1.     The value of the net assets comprising the Business Assets as at 31 March 2020,
         being the date of the last annual financial statements, was negative R153,880,000.

2.2.     The loss after tax attributable to the Business Assets for the year ended 31 March
         2020, was R41,840,000, based on the annual financial statements for the year ending
         31 March 2020.

2.3.     The above financial information attributable to the net assets comprising the Business
         Assets and loss after tax attributable to the Business Assets were prepared in terms
         of IFRS.
 
3. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

   Given that the financial information applicable to the Disposal as set out above has now
   been provided, caution is no longer required to be exercised by shareholders when dealing
   in the Company’s securities.

Pretoria
11 August 2020

Sponsor
PSG Capital Proprietary Limited

Date: 11-08-2020 04:10:00
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