BDM - Buildmax Limited - Disposal of Wholly-Owned subsidiary

BDM - Buildmax Limited - Disposal of Wholly-Owned subsidiary                    
BUILDMAX LIMITED                                                                
Incorporated in the Republic of South Africa                                    
(Registration No. 1995/012209/06)                                               
Share Code: BDM                                                                 
ISIN Code: ZAE000011250                                                         
("Buildmax" or "the Group")                                                     
DISPOSAL OF WHOLLY-OWNED SUBSIDIARY                                             
Buildmax is pleased to announce that it has reached an agreement with Mr G. Rees
("the Purchasers"), a non-related party to the Group, in terms of which the     
Purchaser will acquire all the shares in and claims against Buildmax Industries 
(Proprietary) Limited ("Buildmax Industries"), a wholly-owned subsidiary of     
Buildmax ("the Disposal"), from Buildmax, with effect from 31 January 2012.     
This Disposal is in line with the board of directors` ("the Board") strategy of 
consolidation, strategic repositioning and restructuring of the Group`s         
activities and to focus on transforming the Group into an opencast mining supply
chain services and bulk civils earth works company. Buildmax Industries is a    
rainwater goods manufacturer in Germiston which has been unable to deliver      
sustainable positive returns.                                                   
Buildmax has disposed of its shares in and claims against Buildmax Industries   
for a total purchase consideration of R1. In addition, Buildmax Industries has  
an outstanding shareholder loan account from Buildmax amounting to R4 million   
("the Loan Account"). R2 million of the Loan Account was settled by 31 January  
2012, with the balance plus accrued interest ("Outstanding Balance") due to be  
settled on or before 20 November 2013. The Outstanding Balance is secured by the
shares in Buildmax Industries. The Disposal is not categorized in terms of the  
JSE Listing Requirements and, consequently, the announcement of the Disposal is 
a voluntary announcement made by Buildmax.                                      
This Disposal will enable management to focus its attention on Buildmax`s core  
business.                                                                       
17 February 2012                                                                
Sponsor                                                                         
Java Capital                                                                    
Date: 17/02/2012 12:50:27 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.