Sharenet Sites 
Sharenet Sites
SEP - Sephaku Holdings Limited - Heads of agreement signed with Dangote Industries Limited ("Dangote") and further cautionary Sephaku Holdings Limited (Incorporated in the Republic of South Africa) (Registration number: 2005/003306/06) Share code: SEP ISIN: ZAE000138459 ("Sephaku Holdings" or "the company") Heads of agreement signed with Dangote Industries Limited ("Dangote") and further cautionary 1 Introduction Shareholders are referred to the cautionary announcements dated 20 November 2009, 7 January 2010, 15 March 2010 and 30 April 2010 and to the announcement dated 1 February 2010 which included information relating to the funding of the cement project held by the company`s 80.2%-held subsidiary, Sephaku Cement (Pty) Limited ("Sephaku Cement") ("the Cement Project"). 2 Agreement with Dangote The board is pleased to announce that a heads of agreement has been signed with Dangote in relation to the funding of the Cement Project ("the Dangote agreement") Dangote is one of Nigeria`s largest manufacturing conglomerates with interests in cement, sugar, salt and flour. Dangote, who currently holds a 19.8% interest in Sephaku Cement, will be the the largest producer of cement in sub-Saharan Africa by 2011. 2.1 Equity funding In terms of the Dangote agreement and subject to, inter alia, shareholder approval and the approval of the JSE Limited and any other requisite regulatory bodies, Sephaku Cement will undertake an issue of additional shares to Dangote in order to raise R779 million ("the Dangote issue"). This will result in Dangote holding a 64% interest in Sephaku Cement. The implementation of the Dangote issue will provide the entire equity requirements for the Cement Project. 2.2 Debt funding In terms of the Dangote agreement, Dangote has also agreed to: * provide the necessary guarantees required for Sephaku Cement to secure the debt funding required for the Cement Project; * fund any overruns on the Cement Project with a loan on commercial terms up to an amount of R265 million; and * fund Sephaku Cement`s limestone exploration programme relating to its assets in the Western Cape and Limpopo Province with a loan on commercial terms up to an amount of R35 million. 3 Further cautionary Further announcements providing additional details relating to the funding for the Cement Project, including the relevant financial effects, will be released as soon as possible. Until such time, shareholders should continue to exercise caution when dealing in their Sephaku Holdings shares. Pretoria 1 June 2010 Sponsor QuestCo Sponsors (Pty) Limited Corporate advisor to Sephaku Cement Capital Hill Date: 01/06/2010 17:10:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
