ASTRAPAK LIMITED - Disposal of Hilfort Plastics Bloemfontein and Upington Divisions - APK/APKP

Disposal of Hilfort Plastics Bloemfontein and Upington Divisions - APK/APKP

ASTRAPAK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1995/009169/06)
Share Code: APK
ISIN: ZAE000096962
Share Code: APKP
ISIN: ZAE000087201
("Astrapak", "the Group" or "the Company")


DISPOSAL OF HILFORT PLASTICS BLOEMFONTEIN AND UPINGTON DIVISIONS

1.    INTRODUCTION

      Astrapak has concluded an agreement with Boxmore Plastics SA (Pty) Limited ("Boxmore") in
      terms of which Astrapak will dispose of and Boxmore will acquire the operating entities of
      Hilfort Plastics Bloemfontein and Hilfort Plastics Upington (jointly "Hilfort") as one indivisible
      transaction ("the Transaction").

2.    THE NATURE OF THE BUSINESS OF HILFORT

      Hilfort operates in both the Bloemfontein and Upington markets and manufactures and sells
      PET plastic bottles to segments within the beverage industry.

3.    RATIONALE OF TRANSACTION

      The decision to dispose of Hilfort fits in with Astrapak's strategic objective to focus on
      operations of scale.

4.    TERMS OF DISPOSAL

      Boxmore will acquire Hilfort with effect from 3 December 2014 ("the effective date").

5.    THE CONSIDERATION

      The purchase consideration of approximately R41,000,000 payable to Astrapak, shall be
      discharged by Boxmore paying the purchase consideration in cash into the nominated bank
      account by close of business on the 5th of December 2014. The proceeds will be applied to
      reduce Astrapak's net borrowing position.

6.    FINANCIAL EFFECTS OF THE DISPOSAL

      The net assets value of the business of Hilfort at the effective date will be approximately
      R28,099,988 and the annual net profits after tax attributable to the net assets that are the
      subject of the Transaction is R5,301,360.

7.    CONDITIONS PRECEDENT

      All conditions precedent has been met and the Transaction will therefore be implemented
      from the effective date.

8.    JSE CATEGORISATION

      The Transaction is a category 2 transaction in terms of the JSE Listing Requirements.


Sandton
3 December 2014

Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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