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VUN - Vunani Limited - Acquisition by Vunani Capital (Pty) Limited ("VC") of 31% of Peregrine IQ (Pty) Limited ("PQ") Raising Total Shareholding in PQ to 51% VUNANI LIMITED (Incorporated in the Republic of South Africa) (Registration number 1997/020641/06) JSE code: VUN ISIN: ZAE000110359 ("Vunani" or "the Group") ACQUISITION BY VUNANI CAPITAL (PTY) LIMITED ("VC") OF 31% OF PEREGRINE iQ (PTY) LIMITED ("PQ") RAISING TOTAL SHAREHOLDING IN PQ TO 51% 1. INTRODUCTION Shareholders are advised that the Group has acquired 31% of PQ from Peregrine Financial Services Holdings Limited ("Peregrine") ("the transaction"). Following a recent purchase of a 9% stake in PQ from other shareholders, this transaction extends VC`s holding to 51%, thereby allowing Vunani to assume control of PQ, with Peregrine remaining a 49% shareholder. Ethan Dube, Group Chief Executive Officer said: "Vunani`s acquisition of a controlling interest in PQ is in line with our stated objective of becoming the pre-eminent black owned financial services business in South Africa. Our mission is to offer our clients pertinent solutions and this investment improves our ability to do so for our fund management clients". 2. BACKGROUND DESCRIPTION OF PQ PQ is a South African fund management company that provides institutional and retail clients with a range of fund management products. The business offers both systematic and active fund management with a strong quantitative underpin enforced through rigorous systems development and innovative product research. This investment philosophy has been developed over many years. PQ currently has R 11 billion funds under management covering single-asset (index-linked, bespoke and beta) funds and multi-asset (absolute, target return and balanced) funds. 3. RATIONALE FOR THE ACQUISITION Vunani initially invested in an 11% stake in PQ in 2005 and this follow-up investment presents the ideal opportunity to grow Vunani`s fund management business. PQ will become one of the few black controlled fund managers and this signals Vunani`s commitment to making fund management an important segment in its financial services business. Vunani Limited Managing Director, Butana Khoza said: "In pursuing this acquisition Vunani wanted to capitalise on a business that is highly scalable and has a solid track record with a stable and experienced staff complement. I have been a non-executive director on the board of directors for a few years now and I know that there is intellectual robustness in the team. Furthermore the relationship between management and shareholders is professional. This bodes well for the future." Vunani believes the acquisition augments its fund management offering which currently includes hedge funds of funds, private equity funds of funds, exchange traded funds and private wealth management. This transaction will increase collective funds under management on Vunani`s fund management platform from R 9 billion to R 20 billion. The branding of the business will change to include the name Vunani and the market will be informed of the change once all the necessary regulatory processes have been completed. 4. EFFECTIVE DATE The transaction will become effective on or about 18 June 2010. 5. CLASSIFICATION OF THE TRANSACTION This announcement is being released for information purposes only as it does not fall within the requirements of paragraph 21.10 of the JSE Listings Requirements. Sandton 17 June 2010 Independent Designated Adviser Grindrod Bank Limited Joint Designated Adviser Vunani Corporate Finance Date: 17/06/2010 15:07:01 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.
