BRIKOR LIMITED - Sale of Bronkhorstspruit Property and cautionay announcement

Sale of Bronkhorstspruit Property and cautionay announcement

Brikor Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1998/013247/06)
(Share Code: BIK ISIN Code: ZAE000101945)
("Brikor" or "the Company")


 SALE OF BRONKHORSTSPRUIT PROPERTY AND CAUTIONARY ANNOUNCEMENT

1.   INTRODUCTION

     Shareholders are informed that Brikor has entered into an offer to purchase of immovable
     property agreement (“sale agreement”) on 24 August 2012, subject to conditions precedent,
     for the sale of the following immovable properties (“the transaction”):

     -      Portion 128 of the farm Hondsrivier, Farm No. 508; and
     -      Portion 56 of the farm Schietpoort, Farm No. 507.

     The above are collectively hereafter referred to as “the property”.

2.   BACKGROUND INFORMATION

     Brikor is a manufacturer and supplier of building and construction materials and has clay,
     aggregate and coal mining operations. The company recently entered into a comprehensive
     restructuring programme to restore operations to profitability and to strengthen its financial
     position. Fundamental to the restructuring programme was regaining focus on core
     operations. On 10 October 2011 a decision was taken by board of directors to dispose of the
     Bronkhorstspruit operations, as it was identified as non-core to the main business of Brikor.

3.   RATIONALE FOR THE DISPOSAL

     The sale of the property is in line with Brikor’s strategy to dispose of non-core operations to
     strengthen the group’s cash resources as well as improving its current debt burden. The proceeds
     from the disposal will be utilised to reduce debt.

4.   TERMS AND CONDITIONS OF THE DISPOSAL

     4.1.    On 24 August 2012, Brikor entered into a sale agreement in respect of the property with a
             company to be formed (“Newco”)(“purchaser”). Newco is represented by Mr Marius van
             Wyk.
     4.2.    The purchase price payable for Bronkhorstspruit is R 10 million excluding VAT.
     4.3.    The purchase price will be payable on date of transfer.
     4.4.    The effective date will be the date of transfer.

5.   CONDITION PRECEDENT

     The sale agreement is subject to the following suspensive conditions:
     5.1 The purchaser obtains approval of a loan by a financial institution of not less than R 10
           million;
     5.2 Approval of the transaction by the Brikor board of directors.

6.   UNAUDITED PRO FORMA FINANCIAL EFFECTS OF THE DISPOSAL

     The unaudited pro forma financial effects will be published in due course.

7.   CATEGORISATION OF THE TRANSACTION

     The transaction is categorised, in terms of the JSE Limited’s (“JSE”) Listings Requirements,
     as a Category 2 transaction and does not require shareholders’ approval.
8.     CAUTIONARY ANNOUNCEMENT

       Shareholders are advised to exercise caution in dealing in the company’s securities on the
       JSE until such time as the financial effects of the transaction are published.

9.     FURTHER ANNOUNCEMENT

       Shareholders will be notified once the conditions precedent have been met.


Nigel
24 August 2012

Designated Adviser
Exchange Sponsors

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