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GLOBAL ASSET MANAGEMENT LIMITED - Terms of Rights Offer Announcement in Respect of Renounceable Rights Offer and Withdrawal of Cautionary Announcement

Release Date: 03/05/2018 17:04
Code(s): GAM     PDF:  
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Terms of Rights Offer Announcement in Respect of Renounceable Rights Offer and Withdrawal of Cautionary Announcement

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




TERMS OF RIGHTS OFFER ANNOUNCEMENT IN RESPECT OF THE GLOBAL RENOUNCEABLE
RIGHTS OFFER AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT


Shareholders are referred to the announcement published on 26 January 2018 wherein
it was announced that the Company had decided to raise capital, pending board
approval, by way of a rights offer in order to fund the expansion of its waste to energy
business, particularly its plastic waste to energy business and the subsequent renewal of
cautionary announcement published on 9 March 2018.

Further to these announcements, shareholders are advised that the Company intends
to raise up to R67 235 340 by way of a renounceable rights offer (“Rights Offer”), in
terms of which Global will offer a total of 36 740 623 authorised but unissued ordinary
shares of no par value (“Rights Offer Shares”) at a subscription price of R1.83 per rights
offer share in the ratio 0.5 (50:100) rights offer shares for every Global share held by
shareholders at the close of business on the record date for the rights offer.

The aforementioned Rights Offer Share price represents a premium to the prevailing 30-
day volume weighted average price of the ordinary shares as at 3 May 2018. The Rights
Offer price is at a substantial discount to the net asset value and tangible net asset
value of 264.7 cents per share and 211.9 cents per share respectively.

The allocation of Rights Offer Shares will be that Global shareholders will not be
allocated a fraction of a Rights Offer Share and as such any entitlement to a fraction of
a Right which:

-    is less than one-half of a Rights Offer Share, will be rounded down to the nearest
     whole number; or
-    is equal to or greater than one-half of a Rights Offer Share but less than a whole
     Rights Offer Share will be rounded up to the nearest whole number.

The Rights Offer Shares shall rank pari passu with the existing issued ordinary shares of
Global.

Rationale for the Rights Offer
Global has continued to build up its renewable energy businesses, namely Plastics
Green Energy Proprietary Limited (“PGE”) and Enviroprotek Proprietary Limited (“EPT”).
To facilitate the final steps in the business development for both PGE and EPT, the Board
of Global Asset Management has approved the rights issue for ordinary Global shares,
to ensure the availability of adequate equity funding for both businesses.
Non-renounceable rights and Excess share applications
Shareholders will be able to sell or renounce their rights and will they be able to apply
for any excess Rights Offer Shares not taken up by Global shareholders in accordance
with their right to subscribe for the Rights Offer shares.

Foreign jurisdictions
The Rights Offer does not constitute an offer in any jurisdiction in which it is illegal to
make such an offer and the circular and form of instruction should not be forwarded or
transmitted in any territory other than where it is lawful to make such an offer.

Salient dates
Salient dates will be announced in a declaration announcement in due course. The
Rights Offer circular containing full particulars of the Rights Offer will be distributed to
Shareholders during May 2018.

Withdrawal of cautionary announcement
Shareholders are referred to the cautionary announcement released on 9 March 2018
advising shareholders of the proposed Rights Offer. Accordingly, the cautionary is
withdrawn and caution is no longer required to be exercised when dealing in the
Company’s securities

By order of the Board
Johannesburg
3 May 2018


Designated Advisor
Arbor Capital Sponsors Proprietary Limited

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