Sharenet Sites 
Sharenet Sites
Small related party transaction relating to the acquisition by Keaton of 26% of Amalahle Exploration (Pty) Ltd
Keaton Energy Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number: 2006/011090/06
JSE share code: KEH ISIN ZAE000117420
(“Keaton Energy or “the company”)
SMALL RELATED PARTY TRANSACTION ANNOUNCEMENT RELATING TO
THE ACQUISITION BY KEATON OF 26% OF THE ISSUED SHARE CAPITAL OF
AMALAHLE EXPLORATION PROPRIETARY LIMITED
INTRODUCTION
On 25 September 2007 Keaton Energy Holdings Limited (“KEH”), Camden Bay
Investments 64 Proprietary Limited (“Camden Bay”) and Amalahle Exploration
Proprietary Limited (“Amalahle”) ("Parties") entered into a written shareholders
agreement for the purpose (amongst others) of regulating the rights of KEH and
Camden Bay as shareholders in Amalahle, which agreement was subsequently
amended by an addendum to the shareholders agreement entered into between the
Parties on 3 April 2008 ("Shareholders Agreement").
KEH currently has a 74% (seventy four per cent) holding of the issued ordinary share
capital in Amalahle and Camden Bay holds 26% (twenty six per cent) of the issued
ordinary share capital.
THE TRANSACTION
In terms of the Shareholders Agreement, KEH was granted an option by Camden
Bay ("Exchange Option") to exchange all 26 (twenty six) ordinary shares ("Option
Shares") held by Camden Bay, for the issue by KEH of a certain number of ordinary
shares in the share capital of KEH ("KEH Shares") to Camden Bay.
The Parties now wish to terminate the existing Exchange Agreement and to
substitute the Exchange Agreement by entering into a sale agreement in terms of
which, subject to the fulfilment of certain conditions precedent (including, inter alia,
approval being obtained from the board of directors of the various Parties,
compliance with the JSE Listings Requirements and the relevant provisions of the
Companies Act, 2008), Camden Bay sells, and KEH purchases, all of the Option
Shares for a purchase consideration of R1,000,000 (one million Rand) ("Purchase
Consideration") ("Sale Agreement") with effect from the date on which the
conditions precedent have been met.
FINANCIAL EFFECTS
The cash and cash equivalents balance in KEH’s separate and consolidated
financial statements will decrease by the purchase consideration of R1,000,000. The
purchase consideration will be funded within the group.
The investment in subsidiary relating to Amalahle will increase by R1,000,000 in
KEH’s separate financial statements.
In KEH’s consolidated financial statements the non-controlling interest in equity
relating to Amalahle will be reversed. The effect on profit or loss for the year ended
31 March 2015 will be a decrease in losses attributable to non-controlling interest of
R451,433 and the corresponding increase in losses attributable to the owners of
KEH.
SMALL RELATED PARTY TRANSACTION
The Sale Agreement is subject to the necessary approval being obtained from
Camden Bay, KEH and Amalahle to enter into this Sale Agreement. As KEH is
purchasing the Option Shares from Camden Bay (“Transactions”) which is 40%
held by Rutendo Mining Proprietary Limited (“Rutendo”), which in turn is held by the
KT Trust administered by Mrs APE Sedibe (who serves as non-executive director of
KEH) and her immediate family as trustees, the Transaction is deemed to be a
related party transaction in terms of section 10 of the JSE Listings Requirements.
Based on the value of the Transaction it qualifies as a small related party transaction
as defined in section 10.7 of the JSE Listings Requirements.
Written confirmation was received from an independent professional expert,
acceptable to the JSE, that the terms of the proposed Transaction are fair as far as
the shareholders of KEH are concerned.
The fairness opinion will be available for inspection, during office hours, at KEH’s
registered office for a period of 28 days from the date of this announcement.
Bryanston
30 June 2015
Sponsor
Investec Bank Limited
Date: 30/06/2015 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
