IMBALIE BEAUTY LIMITED - Acquisition of immovable property by Imbalie Innovation and cautionary announcemnt

Acquisition of immovable property by Imbalie Innovation and cautionary announcemnt

Imbalie Beauty Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2003/025374/06)
(Share Code: ILE ISIN: ZAE000165239)
(“Imbalie” or “the company”)

ACQUISITION OF IMMOVABLE PROPERTY BY IMBALIE INNOVATION (PROPRIETARY) LIMITED AND
CAUTIONARY ANNOUNCEMENT

1. Introduction

Shareholders are advised that Imbalie Innovation (Proprietary) Limited (“Imbalie Innovation” or “the
purchaser”), a wholly owned subsidiary of Imbalie, has entered into a Property Sale Agreement
(“agreement”) dated 31 March 2016, whereby Imbalie Innovation will acquire the immovable property
including all buildings situated thereon described as 23 Saddle Drive, Woodmead Office Park, Woodmead,
Gauteng (“the property”) from Policy Property Holdings Two (Proprietary) Limited (“the seller”) for a total
consideration of R13 200 000 (“purchase price”), with effect from the date of registration of transfer of
the property into the name of the purchaser (“the transaction”).

2. Rationale

The rationale of the transaction is to secure the long term availability of the property which is suited to
the business’ requirements at a reduced cost to company.

3. Salient terms and conditions precedent

3.1 In terms of the agreement, Imbalie Innovation shall acquire the property from the seller for the
    purchase price. The purchase price shall be paid by Imbalie Innovation against registration of the
    transfer of the property into the name of the purchaser and pending such registration the property
    shall be secured as follows:
    - by payment of a deposit of R3 750 000 on signature of the agreement.; and
    - in respect of the balance, by means of loan by a financial institution to the purchaser for the
        amount of R9 450 000, or such lessor amount as is acceptable to the seller, which loan is to be
        secured by a mortgage bond simultaneous with transfer in the name of the purchaser. Written
        proof of the loan shall be provided to the seller’s conveyancers within 60 days of payment of the
        deposit, failing which the agreement shall lapse.

3.2 The property is acquired with an existing lease agreement in place.

3.3 Possession and risk shall pass against registration of transfer.

3.4 The Seller has provided warranties in relation to the transaction which are standard for transactions
    of this nature.

4. Categorisation as a small related party transaction

Unihold Group (Proprietary) Limited, the 100% owner of the seller, is a material shareholder in Imbalie.
The transaction is therefore deemed as a small related party transaction in terms of Section 10.1 read
with Section 21.11 of the Listings Requirements of the JSE Limited and no shareholder approval is
required.

5. Net asset value and profits of the property

5.1 The net asset value of the property is deemed to be equal to the purchase price of R13 200 000.
    Imbalie has appointed a registered independent property valuer to determine the market value of the
    property. The outcome of this valuation is imminent and shall be announced in due course.

5.2 The latest financial results of the property was not available at the time of this announcement and
    will be announced in due course.

6. Cautionary announcement

Shareholders are advised to exercise caution when dealing in the Company’s securities until the
independent valuation, the finance arrangements and the profits of the property have been finalised and
announced.

7. Responsibility statement

The Imbalie board accepts responsibility for the information contained in this announcement. To the best
of their knowledge and belief, the information contained in this announcement is true and nothing has
been omitted which is likely to affect the importance of the information included.



4 April 2016

Woodmead



Designated Advisor

Exchange Sponsors

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