VUN - Vunani - Acquisition by Vunani Capital Proprietary Limited of 49% of

VUN - Vunani - Acquisition by Vunani Capital Proprietary Limited of 49% of      
Vunani Fund Managers Proprietary Limited                                        
VUNANI LIMITED                                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number 1997/020641/06)                                            
JSE code: VUN                                                                   
ISIN: ZAE000110359                                                              
("Vunani" or "the Company" or "the Group")                                      
ACQUISITION BY VUNANI CAPITAL PROPRIETARY LIMITED OF 49% OF VUNANI FUND MANAGERS
PROPRIETARY LIMITED                                                             
1.   INTRODUCTION                                                               
Shareholders are advised that Vunani Capital Proprietary Limited ("Vunani   
    Capital"), a wholly owned subsidiary of the Company, has acquired the       
    balance of Peregrine Financial Services Holdings Limited`s ("Peregrine")    
    shareholding of 49% of the ordinary shares in Vunani Fund Managers          
Proprietary Limited ("VFM") (the "Transaction"). This will result in VFM    
    becoming a wholly owned subsidiary of Vunani Capital.                       
2.   BACKGROUND INFORMATION                                                     
    VFM provides institutional and retail clients with a range of fund          
management products.  VFM has approximately R11 billion under management.   
    In 2005 Vunani acquired an initial 11% stake in VFM (then trading as        
    Peregrine iQ).  In June 2010 Vunani announced that it had raised its        
    shareholding to 51% and rebranded Peregrine iQ to VFM.                      
3.   RATIONALE FOR THE TRANSACTION                                              
    The acquisition of the balance of Peregrine`s shareholding in VFM will:     
    *    further Vunani`s stated objective of becoming the pre-eminent black    
         owned financial services business in South Africa;                     
*    send a clear message to existing and prospective clients of VFM that   
         it is now a wholly owned member of a black financial services company; 
         and                                                                    
    *    allow Vunani to structure the affairs of VFM such that the interests   
of management and shareholders of VFM are aligned.                     
    Commenting on the Transaction, Ethan Dube, Chief Executive Officer of       
    Vunani, stated that "VFM is now ready to pursue its objectives of becoming  
    a major player in the institutional fund management industry.  We are       
delighted to have acquired the balance of Peregrine`s shareholding in VFM.  
    With Vunani in full control and Romeo Makhubela on board as CEO we are well 
    positioned to grow funds under management".                                 
4.   PURCHASE CONSIDERATION                                                     
In consideration for the purchase of its 49% shareholding in VFM, Vunani    
    shall issue 100 (one hundred) million ordinary shares at a share price of   
    five (5) cents per ordinary share to Peregrine (the "Consideration          
    Shares").                                                                   
5.   EFFECTIVE DATE                                                             
    The effective date of the Transaction is 1 August 2011.                     
6.   CONDITIONS PRECEDENT                                                       
    The transaction is conditional upon formal application by Vunani to the JSE 
for the listing of the Consideration Shares.                                
7.   CLASSIFICATION OF THE TRANSACTION                                          
    This announcement is being released for information purposes only as it is  
    not a categorised transaction for purposes of the JSE Listings              
Requirements.                                                               
Sandton                                                                         
10 August 2011                                                                  
Independent Designated Adviser                                                  
Grindrod Bank Limited                                                           
Joint Designated Adviser                                                        
Vunani Corporate Finance                                                        
Date: 10/08/2011 17:43:01 Supplied by www.sharenet.co.za                     
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