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GLOBAL ASSET MANAGEMENT LIMITED - Proposed issue of shares to African Rainbow Capital Proprietary Limited

Release Date: 29/06/2016 16:51
Code(s): GAM     PDF:  
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Proposed issue of shares to African Rainbow Capital Proprietary Limited

GLOBAL ASSET MANAGEMENT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2002/003192/06)
Share Code: GAM ISIN: ZAE000173498
("Global")

PROPOSED ISSUE OF SHARES FOR CASH TO AFRICAN RAINBOW CAPITAL
PROPRIETARY LIMITED (“ARC”) AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

Shareholders are referred to the renewal of cautionary announcement released
on 31 May 2016 and are advised that Global is in advanced negotiations with ARC
regarding a proposed transaction which envisages, among other things:

-       ARC subscribing for 19 323 671 Global shares (constituting approximately
        26.3% of Global’s shares following such subscription) at a subscription price
        of R2.07 per share, totaling R40 million (“GAM Subscription”);
-       ARC and certain shareholders of Global entering into a voting pool
        agreement in respect of not less than 50% of Global’s shares;
-       ARC subscribing, at nominal consideration, for such number of shares in
        Enviroprotek Proprietary Limited (“Enviroprotek”) such that it acquires 46%
        of the shares in Enviroprotek following such subscription, and entering into
        appropriate shareholder arrangements in respect of Enviroprotek.

It is currently envisaged that the proceeds of the GAM Subscription will be invested
in various renewable and clean energy projects which Global is undertaking. This is
in line with its medium term strategy at the time of its listing on the JSE and
following the successful establishment of its first rubber to oil pilot plant.

The GAM Subscription will be of a class of share already in issue and will be issued
under the general authority to issue shares for cash.

The shares will be issued at a premium to the 30-day volume weighted average
price as at 27 June 2016, being the date on which the terms of the GAM
Subscription were agreed.

As at the date of this announcement, ARC is not a related party of Global and is
thus considered to be a member of the public as defined in the JSE Limited Listings
Requirements.

Whilst negotiations are at an advanced stage, binding agreements have not been
entered into. A further announcement will be made once final agreements have
been signed.

Withdrawal of Cautionary Announcement
Shareholders are referred to the renewal of cautionary announcement dated
31 May 2016 and are advised that the cautionary announcement is now
withdrawn.

Johannesburg
29 June 2016

Designated Advisor
Arbor Capital Sponsors Proprietary Limited

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