LITHA HEALTHCARE GROUP LIMITED - Explanatory and Further Cautionary Announcement

Explanatory and Further Cautionary Announcement

Litha Healthcare Group limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/006371/06)
JSE code: LHG     ISIN: ZAE000144671
(“Litha” or “the Company”)


EXPLANATORY AND FURTHER CAUTIONARY ANNOUNCEMENT


1. INTRODUCTION

 Litha   shareholders  (“Shareholders”)  are  referred   to  the
 cautionary announcement published on SENS on 1 October 2012 and
 the further cautionary announcement published on SENS on 5
 November 2012.

2. PROPOSED BLACK ECONOMIC EMPOWERMENT TRANSACTION

 Shareholders are advised that the Company has entered into and
 remains engaged in negotiations with a selected black economic
 empowerment (“BEE”) party (“Selected BEE Party”) with a view to
 secure a subscription for ordinary shares in the Company by the
 Selected BEE party on terms and conditions to be agreed upon
 (“Proposed Transaction”).

 The Proposed Transaction is congruent with the Company’s stated
 BEE strategy.

3. EXCLUSIVITY AGREEMENT AND CONSENTS REQUIRED

 Litha granted exclusivity to the Selected BEE Party in respect
 of the Proposed Transaction, which exclusivity shall expire on
 31 March 2013, in the event that the Parties have not
 implemented the Proposed Transaction by this date.

 Litha and the Selected BEE Party (collectively “the Parties”)
 have done extensive work to date, as is customary for a
 transaction of this nature, with a view to progress the Proposed
 Transaction, however, the Proposed Transaction remains subject
 to the Parties reaching agreement on various commercial and
 other aspects pertaining thereto.

 In the event that the Parties reach agreement on the terms and
 conditions of the Proposed Transaction, such agreement will be
 subject to, inter alia, approval by Shareholders in accordance
 with the relevant regulatory and statutory requirements.

4. FURTHER CAUTIONARY ANNOUNCEMENT
The Proposed Transaction, if concluded and implemented, may have
a material effect on the price of the Company’s securities.

Accordingly, Shareholders are advised to continue exercising
caution when dealing in the Company’s securities until a
detailed announcement or a withdrawal of cautionary announcement
is published.

Midrand
18 December 2012


Sponsor
RAND MERCHANT BANK
(A division of FirstRand Bank Limited)

Date: 18/12/2012 09:36:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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