New terms relating to the previously announced proposed disposal of the sames property LABAT AFRICA LIMITED (Incorporated in the Republic of South Africa) (Registration number 1986/001616/06) (“Labat” or “the company”) ISIN Code: ZAE 000018354 Share code: LAB NEW TERMS RELATING TO THE PREVIOUSLY ANNOUNCED PROPOSED DISPOSAL OF THE SAMES PROPERTY Introduction As announced on SENS on 9 October 2013, the company advised that it has received a firm offer dated 03 October 2013 for the SAMES property from a related party, Zatoblox Proprietary Limited, for a purchase consideration of R17 million. The board is pleased to advise that it has received a higher cash offer of R18.8 million from Morgan Creek Properties 311 CC (“Morgan Creek”) for the purchase of the SAMES Property. Morgan Creek is not a related party to Labat. Labat has accepted the offer on 6 November 2013. Accordingly, the offer from Zatoblox will be terminated. The SAMES property is regarded as being non-core to the current and future business of Labat and will be sold by Sames Properties, a wholly owned subsidiary of Labat. Any capital gains tax arising on the Disposal will be settled by Sames Properties. Any transfer duties will be payable by the purchaser of the SAMES Property. Business of SAMES property The SAMES Property has largely remained without tenants since the outsourcing of the manufacturing of the group’s electronic chip manufacturing business. The SAMES property is located at Portion 1 of Erf 113, 33 Eland Street, Koedoespoort, in Pretoria and measures 16 657 square metres of which 3 297 square metres is occupied by SAMES (Pty) Ltd at a gross rental of R27.29 per square metre, and third parties occupying 2 181 square metres at a gross rental of R28.79 per square meter excluding VAT. This results in a weighted average rental per square metre of the entire gross lettable area of R27.89. A valuation report has been obtained from an external independent property valuer which valued at the property at R16 750 000 (Sixteen Million Seven Hundred and Fifty Thousand Rand). Purchase consideration The purchase consideration the Purchase Consideration”) payable by the Purchaser to the Seller in terms of the Sale Agreement is an amount equal to R18 800 000 (Seventeen Million Rand) inclusive of VAT at a rate of 0%. A deposit of R3 000 000 has been paid to Labat’s attorneys and a bank guarantee of R15 800 000 must be furnished by no later than 28 February 2014, payable free of exchange against registration of the SAMES Property into the name of Morgan Creek. Conditions precedent The SAMES property disposal is conditional on the approval of the Labat shareholders in General Meeting. The property will effectively be sold “voetstoets”. Application of the sale proceeds The sale proceeds will be applied towards the repayment of debt, funding working capital requirements, and the furthering of local activities or investments to the extent that cash is available. The effective date of the transaction The effective date of the SAMES Property Disposal is not known as at the Last Practicable Date but will be with effect from the date of the transfer of the SAMES Property. Pro forma financial effects of the transaction The pro forma financial effects of the proposed disposal of property will be announced in due course once the pro forma financial effects have been finalised. Classification of the transaction The SAMES Property disposal is a Category 1 transaction in terms of the Listings Requirements and a fundamental transaction in terms of section 112 of the Act. Accordingly, Labat shareholders are required to consider and approve the SAMES Property disposal and pass the necessary special resolution prior to implementation. Labat shareholders will be provided with information on the SAMES Property Disposal in terms of section 115 of the Act, the Takeover Regulations and the Listings Requirements, so as to enable them to make an informed decision whether or not to vote in favour of the special resolutions required to implement the SAMES Property disposal. RENEWAL OF CAUTIONARY ANNOUNCEMENT Pursuant to the abovementioned proposed disposal of the SAMES Property as well as the previously announced rights offer, shareholders are advised to exercise caution when dealing in the company’s securities until pro forma financial effects are announced. Johannesburg 19 November 2013 Sponsor Arcay Moela Sponsors Proprietary Limited Date: 19/11/2013 02:41:00 Produced by the JSE SENS Department. 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