ITE - Italtile Limited - Cautionary announcement relating to a conditional

ITE - Italtile Limited - Cautionary announcement relating to a conditional      
offer to acquire a strategic stake in Ceramic Industries Limited                
Italtile Limited                                                                
Share code: ITE   ISIN: ZAE000099123                                            
Reg. no.: 1955/000558/06                                                        
Incorporated in the Republic of South Africa                                    
("Italtile" or "the Company")                                                   
Cautionary announcement relating to a conditional offer to acquire a            
strategic stake in Ceramic Industries Limited                                   
1.   Introduction                                                               
Italtile shareholders ("Shareholders") are advised that the board of            
directors of Italtile ("the Board") has submitted a conditional offer to the    
board of Ceramic Industries Limited ("CIL") in terms of which the Company       
proposes to make an offer to acquire between 15% and 20% ("the Proposal") of    
the issued share capital of CIL from CIL shareholders.                          
2.   Rationale for the Proposal                                                 
Italtile values its sound relationship with CIL and has a long history of       
purchasing tiles, sanitaryware and baths from CIL. In order to support          
Italtile`s growth objectives, the Board would like to strengthen its            
relationship with CIL, as a key supplier to the Company, through the            
acquisition by Italtile of a strategic shareholding in CIL.                     
3.   Proposed consideration                                                     
The proposed consideration is R130 per CIL share, in cash.                      
4.   Conditions precedent to the Proposal                                       
The Proposal is subject to the following conditions precedent:                  
*    the successful outcome of a due diligence exercise;                        
*    the support of the CIL board to a transaction of this nature and to        
Italtile receiving some formal assurances that CIL will be in a             
    position to support the growth strategies of Italtile, which includes       
    receiving assurance of the continued involvement of the current             
    management of CIL in that business; and                                     
*    to receiving the necessary regulatory and legislative approvals.           
5.   Cautionary announcement                                                    
Shareholders are advised to exercise caution when dealing in the Company`s      
securities until a further announcement in this regard is published.            
Bryanston                                                                       
28 May 2012                                                                     
Sponsor:                                                                        
KPMG Services Proprietary Limited                                               
Date: 28/05/2012 08:20:00 Supplied by www.sharenet.co.za                     
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