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LABAT AFRICA LIMITED - Update on RTG acquisition and forecast for the year ending 31 August 2016 and cautionary announcement

Release Date: 17/03/2016 17:00
Code(s): LAB     PDF:  
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Update on RTG acquisition and forecast for the year ending 31 August 2016 and cautionary announcement

LABAT AFRICA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/001616/06)
(“Labat” or “the Company”)
ISIN Code: ZAE 000018354 Share code: LAB


UPDATE ON RTG ACQUISITION AND FORECAST FOR THE YEAR ENDING
31 AUGUST 2016 AND CAUTIONARY ANNOUNCEMENT




The RTG turnover is lower than expected and margins have been impacted
negatively over the period ended 29 February 2016.

Whilst the recent Level 4 BEE certification and the 51% black ownership of Labat
are starting to have a positive impact on the RTG business, the published
forecast, as it relates to RTG, will not be achieved for the year ending 31 August
2016.

Given the performance of RTG, the directors have decided that the best
approach is to properly assess the situation with the RTG vendor in order to
restructure cash flows around the transaction that make sense to Labat,
incoming investors as well as RTG. Labat still believes that the RTG business is
fundamentally a good business, with a 30 year track record and is an excellent
base upon which to build the broader logistics strategy.

Shareholders are accordingly advised to exercise caution in dealing in their
securities until a further announcement is made.

Johannesburg
17 March 2016

Sponsor
Arbor Capital Sponsors Proprietary Limited

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