HUDACO INDUSTRIES LIMITED - Announcement regarding the acquisition of the trading assets and liabilities of SS Telecoms CC and Commercial ICT

Announcement regarding the acquisition of the trading assets and liabilities of SS Telecoms CC and Commercial ICT

HUDACO INDUSTRIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1985/004617/06)
Share code: HDC & ISIN: ZAE000003273
(“Hudaco”)

                      ANNOUNCEMENT REGARDING THE ACQUISITION OF
                THE TRADING ASSETS AND LIABILITIES OF SS TELECOMS CC (“SST”)
                                            AND
             RIO RIDGE 1378 CC, TRADING AS COMMERCIAL ICT (“ COMMERCIAL ICT”)
                                    (“THE TRANSACTIONS”)

Hudaco has acquired the trading assets and liabilities of two separate businesses, SST and Commercial
ICT, from 1 December 2016. The final total consideration, to be paid out of existing facilities and future
cash flow, will depend on the average profits over a three year earn-out period, with a combined initial
payment of R28m and a combined maximum of R111m.

SST is a voice and data solution provider for businesses of all sizes, specialising in PBX (premise based,
cloud, call centre, data routing and Wi-Fi), communication management software, voice recording,
handsets and telephone management. SST manufactures certain specialised products for fleet
management and voice routing while also providing mobile technology solutions including LTE, 3G,
Fixed Line and VoIP.

Commercial ICT is a small core IT systems and infrastructure provider, with exclusive agencies for
communication products sold to inter alia the security industry. This involves the supply, management
and maintenance of these products and their infrastructure within cellular networks in South Africa
and certain African countries. Their revenue stream is annuity based and the company has committed
long term contracts with its customers and suppliers. Commercial ICT will complement the offering of
Hudaco’s security product businesses.

The Transactions fall below the threshold of category 2 transactions, which requires disclosure in
terms of the JSE Limited’s Listing Requirements. However, Hudaco’s Board believes it is appropriate
to inform shareholders of the Transactions.

Johannesburg
14 December 2016

Sponsor
Nedbank Corporate and Investment Banking

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