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PFG - Pioneer Foods - Renewal of Cautionary Announcement - Proposed B-BBEE

Release Date: 03/11/2011 09:03
Code(s): PFG
Wrap Text

PFG - Pioneer Foods - Renewal of Cautionary Announcement - Proposed B-BBEE Transaction PIONEER FOOD GROUP LIMITED Incorporated in the Republic of South Africa (Registration number: 1996/017676/06) JSE share code: PFG ISIN: ZAE000118279 ("Pioneer Foods" or "the Company") RENEWAL OF CAUTIONARY ANNOUNCEMENT - PROPOSED B-BBEE TRANSACTION Shareholders are referred to the cautionary announcement published on 4 August 2011 as well as the renewal of the announcement on 19 September 2011. The Company concluded a B-BBEE transaction with its employees in 2006 which effectively equated to 10% black ownership of the Company at the time. Pioneer Foods now proposes to increase and broaden the black ownership of the Company to include a broad-based Educational and Community Trust, strategic B- BBEE partners and black members of the board of the Company ("proposed B-BBEE transaction"). The proposed B-BBEE transaction will be implemented by way of vendor and third party finance, pursuant to which the B-BBEE shareholders will acquire a direct equity interest in the Company of approximately 13.5% at market related values. Third party BEE parties will be issued 8.5% and a broad-based Educational and Community Trust approximately 5%. Finalisation of funding is at an advanced stage. Following the implementation of the proposed B-BBEE transaction, the Company will have an effective black ownership of more than 18.5% (including the initial Pioneer Foods employees` scheme) as measured in terms of the dti Codes of Good Practice on Broad Based Black Economic Empowerment. The proposed B-BEE transaction will be subject to various conditions including shareholder approval. Further details including salient dates and the pro-forma financial effects will be announced in due course, once finalised. Shareholders are accordingly advised to continue to exercise caution when dealing in the Company`s securities until a final announcement is made. Paarl 3 November 2011 Sponsor PSG Capital (Pty) Limited Date: 03/11/2011 09:03:28 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.

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