ALERT STEEL HOLDINGS LIMITED - Restructuring of the acquisition of stock, furniture and fittings from Build Kwik and the withdrawal of cautionary

Restructuring of the acquisition of stock, furniture and fittings from Build Kwik and the withdrawal of cautionary

Alert Steel Holdings Limited

(Incorporated in the Republic of South Africa)

(Registration number 2003/005144/06)

JSE Share Code: AET ISIN: ZAE000092847

(“Alert Steel” or “the company”)





RESTRUCTURING OF THE ACQUISITION OF STOCK, FURNITURE AND FITTINGS FROM BUILD

KWIK AND THE WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT





1.      INTRODUCTION



1.1     Shareholders are referred to the announcement released on SENS on 5 August 2013 (“Previous

        announcement”) where shareholders were informed that Alert Steel (Pty) Ltd, entered into an agreement on 5

        August 2013 to purchase the business including certain specified assets and liabilities of Build Kwik for

        R58 138 809. Shareholders are advised that the entire transaction has been restructured in pursuance of

        which the above agreement has been cancelled.



1.2     Alert Steel (Pty) Ltd agreed on 25 November 2013, to purchase the saleable stock of Build Kwik in the

        ordinary course of business, which acquisition shall take place over a period of 7 months and have an

        expected value of approximately R35 000 000.



1.3     In addition, Alert Steel (Pty) Ltd shall, in terms of an agreement dated 27 November 2013, purchase from

        Build Kwik certain of its fixtures, fittings and other movables for a purchase consideration of approximately

        R6 300 000 (“the fixtures and fittings acquisition”).



1.4     Terms used and not otherwise herein defined, shall have the meanings ascribed thereto in the Previous

        Announcement.



1.5     The JSE Limited has confirmed in writing, that the acquisition of the saleable stock is not a “transaction” as

        defined in the JSE Listings Requirements.



1.6     The fixtures and fittings acquisition is categorised, in terms of the JSE Listings Requirements, as a

        Category 2 transaction and does not require shareholders’ approval.



2.      RATIONALE FOR THE FIXTURES AND FITTINGS ACQUISITION



        The rationale for the fixtures and fittings acquisition is to pack and lay out the saleable stock acquired.



3.      DESCRIPTION OF THE FIXTURES AND FITTINGS



        The fixtures and fittings mainly comprise boards, warehouse and shop shelving and other electronic

        equipment.



4.      TERMS AND CONDITIONS OF THE FIXTURES AND FITTINGS ACQUISITION



4.1.    The acquisition of furniture and fittings for R6 300 000 is payable by way of seven equal monthly instalments,

        the first of which shall be paid on 2 December 2013 and the subsequent instalments shall be paid on or before

        the 5th day of each succeeding month.

4.2.    The physical delivery of the furniture and fittings shall take place on 1 December 2013.

4.3.    The furniture and fittings will be acquired voetstoots.





5. THE PRO FORMA FINANCIAL EFFECTS OF THE FIXTURES AND FITTINGS ACQUISTION



       The pro forma financial effect of the fixtures and fittings acquisition on the net assets and net tangible assets

       per share are below 3% and are considered insignificant.

6.   WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT



     Shareholders are referred to the various cautionary announcements regarding the publication of the

     financial effects of the acquisition and are advised that caution is no longer required in dealing in the

     company’s securities on the JSE.







     27 November 2013

     Pretoria





     Designated Adviser

     Exchange Sponsors


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