GROUP FIVE LIMITED - Conclusion of Group Five's disposal of its joint venture interest in Group Five Pipe

Release Date: 14/05/2018 16:45
Code(s): GRF
 
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Conclusion of Group Five's disposal of its joint venture interest in Group Five Pipe

Group Five Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1969/000032/06)
Share code: GRF ISIN: ZAE000027405
("Group Five” or “the Company”)


CONCLUSION OF GROUP FIVE’S DISPOSAL OF ITS JOINT VENTURE INTEREST IN
GROUP FIVE PIPE

Further to the announcement released on SENS on 22 November 2017, the Board of Group
Five is pleased to announce that all conditions precedent relating to the disposal of its 50%
share in its steel pipe business, Group Five Pipe, have been fulfilled. The total cash
consideration of R80 million has been received by the Group, which will be retained in Group
Five Construction and applied to its activities, as required.

Group Five Pipe manufactures large bore spiral-welded steel pipes, mainly for water transport
systems.

The purchaser, LB Pipes Proprietary Limited is 51% owned by a black industrialist Mr Kuseni
Dlamini, 26% by Marine Civil Proprietary Limited and 23% by the Industrial Development
Corporation (“IDC”). The disposal into a predominantly black-owned company retains the
engineering skills of Marine Civils alongside the financial backing of the IDC. The disposal was
concluded at fair value as a going concern.

Johannesburg
14 May 2018

Transaction Sponsor
THE STANDARD BANK OF SOUTH AFRICA LIMITED

Legal Advisor
WERKSMANS ATTORNEYS

Sponsor
NEDBANK CORPORATE AND INVESTMENT BANKING

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