ALLIED ELECTRONICS CORPORATION LIMITED - Withdrawal of cautionary

Withdrawal of cautionary

Allied Electronics Corporation Limited
Incorporated in the Republic of South Africa
Registration Number: 1947/024583/06
ISIN: ZAE000191342
Share Code: AEL
Share Code: AEN
(“Altron" or the “Company")


WITHDRAWAL OF CAUTIONARY

Shareholders are referred to the detailed cautionary announcement released by Altron on the Stock
Exchange News Service (“SENS”) on 6 December 2016 (“Detailed Cautionary Announcement”),
relating to the in-principle agreement between the Company and Value Capital Partners (Pty) Ltd
(“VCP”) regarding, inter alia, the:

1. collapse of the Company’s historical dual share capital structure and the removal of the Venter
   Family’s absolute voting control over the Company;
2. subscription by the Venter Family for a new high voting share which will entitle the Venter Family
   to exercise 25.0% plus one vote at any shareholders' meeting for as long as the Venter Family
   owns in excess of 10.0% of the “A” class shares in the Company;
3. introduction of VCP as a new strategic partner, which is expected to be a catalyst in driving
   shareholder value creation by accelerating the Company’s growth initiatives within its core IT
   operations; and
4. appointment of VCP’s co-founders, Antony Ball and Samuel Sithole, to the board of directors of
   Altron as non-executive directors.
   (collectively, the “Proposed Transaction”)

In the Detailed Cautionary Announcement, Altron cautioned shareholders that the implementation of
the Proposed Transaction was subject to regulatory approvals. At that point in time Altron had no
certainty that the regulatory approvals would be obtained. Based on in-principle confirmations and
approvals received from the relevant regulators, Altron is now reasonably certain that all required
regulatory approvals will be obtained. As a result of the in-principle confirmations and approvals
obtained, the Company intends to pursue implementation of the Proposed Transaction and issue the
related circular in due course.

Shareholders are referred to the Detailed Cautionary Announcement released by the Company on
SENS on 6 December 2016 and are advised that caution is no longer required to be exercised by
shareholders when dealing in Altron’s securities.


Parktown, Johannesburg
3 February 2017

Joint financial advisor and sponsor
Investec Bank Limited

Joint financial advisor
Rand Merchant Bank (A division of FirstRand Bank Limited)

Legal advisor
Edward Nathan Sonnenbergs Incorporated

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