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LABAT AFRICA LIMITED - Funding agreement between Labat and Milost Global Inc.

Release Date: 07/02/2017 16:54
Code(s): LAB     PDF:  
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Funding agreement between Labat and Milost Global Inc.

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


VOLUNTARY SENS ANNOUNCEMENT – FUNDING AGREEMENT BETWEEN LABAT AND
MILOST GLOBAL INC.


Shareholders are advised that Labat Africa has entered into a funding agreement
with Milost Global Inc. (“Milost”)

Milost is a private equity firm headquartered in New York City. With more than $25
billion in committed capital, the firm operates at the intersection of innovation,
capital, and job creation.

Milost funds publicly traded companies through its 'MESA' or Milost Equity
Subscription Agreement. The MESA is a differentiated equity investment facility
whose unique features catalyze long term corporate growth that enhance
shareholder value.
Milost provides its capital, to companies around the world in a broad range of
industries including technology, health care, education, mining, oil & gas, financial
services, and real estate.

Milost’s MESA funding agreement is divided into two parts.

   -   A R250 million facility for the subscription of shares in Labat Africa will be used
       primarily for working capital purposes. This equity component will be
       subscribed at a 50% premium to the 5 day volume-weighted average share
       price for each draw down, which shares are expected to be issued under
       the Company’s general authority to issue shares for cash. Based on the
       Company’s share trading price, a mechanism exists for a defrayment
       amount to be settled through the issue of Labat shares. This will also be
       settled under the Company’s general authority to issue shares for cash,
       provided that the issue price is within the limits set by the general authority,
       failing which the issue of shares may require shareholder approval.
   -   A R750m convertible debt facility will be used to finance acquisitions.

The drawdown of the facility is subject to regulatory approvals and each
drawdown will be in accordance with all the regulatory approvals. Any share issue
and conversion options will be limited to below 35% and will not trigger an offer to
minority shareholders of Labat.
This equity and funding facility will assist Labat in its expansion strategy in the
transport and logistics sector. The company is currently reviewing a number of
possible opportunities that it believes will add value to the Company.

Johannesburg
7 February 2017


Sponsor
Arbor Capital Sponsors Proprietary Limited

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