CAP - Cape Empowerment Limited - Partial disposal of interest in Grand Parade

CAP - Cape Empowerment Limited - Partial disposal of interest in Grand Parade   
Investments Limited and further cautionary announcement                         
CAPE EMPOWERMENT LIMITED                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 1987/001807/06)                                            
JSE Code CAP                                                                    
ISIN ZAE000145066                                                               
("Cape Empowerment" or "the company")                                           
PARTIAL DISPOSAL OF INTEREST IN GRAND PARADE INVESTMENTS LIMITED ("GPI") AND    
FURTHER CAUTIONARY ANNOUNCEMENT                                                 
1.   INTRODUCTION                                                               
Shareholders are referred to the cautionary announcement which was published    
on SENS on 10 February 2011 and in the press on 11 February 2011, and are       
advised that Cape Empowerment, through its wholly-owned subsidiary, Business    
Venture Investments No 1275 (Proprietary) Limited ("BVI"), has disposed of 11   
million ordinary shares in GPI ("GPI shares") to Baleine Capital (Proprietary)  
Limited or its nominee ("Baleine") for a cash consideration of R28.6 million    
("the disposal").                                                               
2.   RATIONALE FOR THE DISPOSAL                                                 
2.1  The GPI shares in question is part of the component of the Cape            
    Empowerment group`s holding in GPI that is subject to certain Black         
    Economic Empowerment restrictions which has an impact on its tradability.   
    The disposal is an opportunity to realise these GPI shares at close to      
the current market value of unrestricted GPI shares.                        
2.2  The disposal is also in line with the group`s strategy of repositioning    
    its investment focus mainly on the property sector and on assets that it    
    controls.                                                                   
3.   TERMS OF THE DISPOSAL                                                      
3.1  The effective date of the disposal is the closing date thereof, being the  
    third business day after fulfilment of the conditions precedent detailed    
    in paragraph 3.3 below.                                                     
3.2  The purchase consideration for the GPI shares of R 28 600 000 is payable   
    in cash on the closing date.                                                
3.3  Conditions precedent                                                       
The disposal is subject to fulfilment of the outstanding conditions precedent,  
by not later than 15 April 2011, that:                                          
3.3.1     the section 228 special resolution passed by the shareholder of BVI   
         approving of the disposal be registered by the Companies and           
         Intellectual Property Registration Office; and                         
3.3.2     Baleine obtains the necessary approvals from GPI for the disposal as  
         may be necessary.                                                      
4.   PRO FORMA FINANCIAL EFFECTS                                                
The pro forma financial effects of the disposal on Cape Empowerment`s earnings  
per share, headline earnings per share, net asset value and net tangible asset  
value per share for the six month period ended 30 June 2010 are not             
significant (i.e. are less than 3%), and are therefore not required to be       
disclosed.                                                                      
5.   CATEGORISATION OF THE TRANSACTION                                          
The disposal is categorised as a category 2 transaction in terms of the         
Listings Requirements of the JSE Limited.                                       
6.   FURTHER CAUTIONARY ANNOUNCEMENT                                            
Shareholders are advised that the company is still in other negotiations        
which, if successfully concluded, may have a material impact on the price of    
the company`s securities.  Accordingly shareholders are advised to continue to  
exercise caution when dealing in the company`s securities until a further       
announcement is made.                                                           
Cape Town                                                                       
15 March 2011                                                                   
Sponsor                                                                         
Sasfin Capital                                                                  
(A division of Sasfin Bank Limited)                                             
Legal advisors                                                                  
Cliffe Dekker Hofmeyr Inc.                                                      
Date: 15/03/2011 16:00:01 Supplied by www.sharenet.co.za                     
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