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MOR - Morvest Business Group Limited - Acquisition of portion 709 of farm Randjesfontein MORVEST BUSINESS GROUP LIMITED (Previously Simeka Business Group Limited) (Incorporated in the Republic of South Africa) (Registration No. 2003/012583/06) Share code: MOR ISIN code: ZAE000152567 ("Morvest" or "the Company") 1. ACQUISITION OF PORTION 709 OF FARM RANDJESFONTEIN 405 JR NOORDWYK EXTENSION 94 1.1 Introduction The board of Morvest is pleased to announce that the Company, reached agreement with Faircity Midrand Pty Limited ("the Seller") for the acquisition of the remainder of Portion 709 of Farm Randjesfontein, 405- JR Noordwyk Extension 94 ("the property")("the acquisition"). The sole shareholder of the Seller is Mr Andries du Plooy. 1.2 Terms of the acquisition The effective date of the acquisition will be the date of registration of transfer of the property into the name of Morvest. 1.3 Settlement of the purchase consideration - The total purchase consideration for the property is R17,1 million payable on registration of transfer of the property into the name of Morvest with an initial cash deposit of R1
million payable by 19 July 2011; and - the balance of R16,1 million in the form of a guarantee in favour of the sellers payable on or before 9 September 2011. The property is being purchased "as is" and is subject to warranties that are normal for a transaction of this nature. 1.4 Conditions precedent The acquisition is subject to conditions and servitudes that are considered normal for transactions of this nature. 1.5 Description of the property Farm Randjesfontein is located in the Gauteng Province of South Africa,14th Avenue Noordwyk, Midrand, Gauteng. It measures approximately 24.756 hectares being the remaining Extent of Farm No. 709 Farm Randjesfontein, 405-JR Noordwyk Exention 94. 1.6 Rationale for the acquisition Morvest intends building a campus during the next 18 - 24 months on the property to consolidate all Gauteng-based group companies into one central location. This will result in improved synergies, cost savings through the centralisation of shared services as well as a reduction in travel and rental costs. In addition enhanced inter- group communication will enable increased leveraging of cross- selling opportunities within Morvest. The company believes building ownership will be of long-term benefit to all stakeholders. 2. FINANCIAL EFFECTS The proforma financial effects for the acquisition on Morvest`s headline earnings per share and earnings per share for the year ended 31 May 2011 are not significant in terms of the JSE Limited`s Listings Requirements. 3. CATEGORISATION OF THE TRANSACTION The acquisition is categorised as a Category 2 transaction in terms of the JSE Limited`s Listings Requirements. Johannesburg 1 August 2011 Sponsor: Sasfin Capital A division of Sasfin Bank Limited Date: 01/08/2011 16:25:00 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.
