PINNACLE HOLDINGS LTD - Announcement regarding disposal of property

Announcement regarding disposal of property

Pinnacle Holdings Limited
Registration number 1986/000334/06
Share Code: PNC
ISIN: ZAE000184149
(“Pinnacle” or “the Group” or “the Company”)

ANNOUNCEMENT REGARDING DISPOSAL OF PROPERTY

INTRODUCTION

In a SENS announcement issued on 2 April 2015 the Company advised that it would announce
further details on the Samrand Property (‘‘the property’’) in due course.

The board of directors of Pinnacle (“the Board”) is therefore pleased to announce that it has
entered into a sale agreement in terms of which Pinnacle, through a subsidiary company, will
dispose to Erf 117746 Nourse Avenue (Pty) Ltd (“the “Purchaser”), the property being Stand
853,854,855,856,857,858,881,882,883,859,876, Kosmosdal ext.11, for R52,000,000 (“the
Disposal”).

The disposal will realise R50 960 000 after commission.

The above property was vacant land earmarked for future use as warehousing and offices.

The effective date of the Disposal is the transfer date. The Disposal is subject to the following
suspensive conditions to be fulfilled by 30 April 2015:

   .   A due diligence on the Property, and all conditions applicable thereto, to be undertaken
       by the Purchaser to the Purchaser’s satisfaction;
   .   Board approval of the ultimate holding company of the Purchaser; and
   .   Written confirmation from the previous owner that it will not exercise their right of first
       refusal over the property.

RATIONALE

As communicated with the release of the unaudited interim results for the six months ended 31
December 2014, the reduction of gearing of the Group remains a key priority and to that end the
Board approved the disposal of the Group’s property portfolio. The Disposal proceeds less the
settlement of the existing bond of R32,936,462 on the property will therefore be applied towards
reducing gearing.

CATEGORISATION
The Disposal is below the Listings Requirements of the JSE Limited categorisation thresholds and
therefore does not require Pinnacle shareholder approval.

The Disposal consideration, aggregated with the sale consideration of other Pinnacle properties
as set out in the SENS announcement on 2 April 2015, is a Category 2 transaction in terms of the
Listings Requirements of the JSE Limited and does not require Pinnacle shareholder approval.

FINANCIAL INFORMATION

The carrying value of the property as at 31 December 2014 was R45 309 472.

WARRANTIES

The parties have provided standard warranties that are usual for this type of transaction.

Midrand
10 April 2015

Sponsor: Deloitte & Touche Sponsor Services Proprietary Limited

Legal Advisor: Tugendhaft Wapnick Banchetti and Partners

Date: 10/04/2015 03:09:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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