IMPERIAL HOLDINGS LIMITED - Cautionary Announcement: Proposed Disposal of Regent

Cautionary Announcement: Proposed Disposal of Regent

Imperial Holdings Limited
Registration number: 1946/021048/06
Share code: IPL
ISIN: ZAE000067211
(‘Imperial’ or ‘the company’)

CAUTIONARY ANNOUNCEMENT: PROPOSED DISPOSAL OF REGENT

Shareholders are advised that Imperial has entered into exclusive
negotiations with The Hollard Insurance Group and an associated party
(“Hollard”) regarding the acquisition by Hollard of Imperial`s
interest in Regent Insurance Company Limited and Regent Life Assurance
Company Limited (“Regent”) (“Proposed Transaction”).

Rationale
The Regent business consists of long and short term licences in South
Africa, Botswana and Lesotho. It covers both motor-related insurance
as well as a number of non-motor areas.

While the business of Regent has grown strongly since its
establishment, a large fast growing portion of Regent’s revenue and
profits are unrelated to the Group’s core vehicle and logistics
businesses and enjoy no strategic, competitive or financial advantage
from Imperial’s ownership.

The growth prospects and value of these unrelated businesses will be
better advanced by owners with established capability and scale in
financial services and insurance.

Therefore, and consistent with its espoused strategy to invest in its
core capabilities, Imperial has decided to dispose of the business and
insurance licences of Regent, in a transaction structured to allow the
group continued access to the income flows generated by the
distribution of vehicle related insurance and value added products,
through Imperial’s extensive dealership network.

The proceeds from the proposed transaction will be invested in due
course in the expansion of the group’s core businesses while initially
reducing short term debt.

Next steps
The exclusivity period for the negotiations is three months.
Shareholders will be advised as soon as the parties either terminate
negotiations or intend to seek the required governance and regulatory
approvals.

Cautionary announcement
Shareholders are advised to exercise caution when dealing in the
company’s securities until a further announcement on the Proposed
Transaction is made.

Bedfordview
27 May 2015

Sponsor:
Merrill Lynch South Africa (Pty) Limited

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