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Small Related Party Transactions
Value Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1997/002203/06
Share code: VLE
ISIN code: ZAE000016507
(“Value” or “the Group”)
SMALL RELATED PARTY TRANSACTIONS
1. Introduction, rationale and salient terms
Value is an integrated logistics service provider. Services are conducted throughout South Africa utilising its
infrastructure, incorporating its logistics premises, which are critical in conducting its operations.
Shareholders of Value are advised that Value Logistics Limited (a wholly owned subsidiary of Value) (“the Lessee”)
has entered into the following triple nett lease agreements (“the Leases”) with various property companies
represented by Mr Steven Gottschalk (a director of Value), in respect of the following:
1.1 Related party property owning company: Lougot Property Investments (Pty) Ltd
Property description: Erf 18951 East London, Buffalo City Metropolitan Municipality,
situated at 10 Quadrant Road, Woodbrooke, East London
Lease commencement date: 1 May 2021
Lease expiry date: 30 April 2023
Lease period: 2 years
Monthly rental (excluding VAT): R284 000.00
Annual escalation rate: 6% on 1st of May 2022
The Lease is not subject to the fulfilment of any conditions precedent.
1.2 Related party property owning company: Lougot Property Investments (Pty) Ltd
Property description: Workshop building and associated areas situated on Erf 342,
Isando Extension 1, Kempton Park, Johannesburg Gauteng
Province, situated at No. 2 Anvil Road, Isando, Ext. 1)
Lease commencement date: 1 February 2021
Lease expiry date: 31 January 2024
Lease period: 3 years
Monthly rental (excluding VAT): R179 000.00
Annual escalation rate: 6,5% on 1st of February 2022
The Lease is not subject to the fulfilment of any conditions precedent.
1.3 Related party property owning company: Lougot Property Investments (Pty) Ltd
Property description: Administration offices and associated areas situated on Erf 342,
Isando Extension 1, Kempton Park, Johannesburg Gauteng
Province, situated at No. 2 Anvil Road, Isando, Ext. 1)
Lease commencement date: 1 February 2021
Lease expiry date: No expiry date
Lease period: Month to month from commencement date, subject to 1 calendar
month’s written notice of termination.
Monthly rental (excluding VAT): R114 000.00
Annual escalation rate: 6,5% on 1st of February 2022
The Lease is not subject to the fulfilment of any conditions precedent.
1.4 Related party property owning company: Future Indefinite Investments 180 (Pty) Ltd
Property description: Erf 3781 Pomona Extension 113, Ekurhuleni Metropolitan
Municipality and Remainder of Portion 681 of Farm Rietfontein
31, IR, Greater East Rand Metropolitan Municipality, situated at
681 7th Avenue, Pomona
Lease commencement date: 1 February 2021
Lease expiry date: 31 January 2024
Lease period: 3 years
Monthly rental (excluding VAT): R315 379.86 (1 February 2021 to 31 July 2021)
R449 000.00 (1 August 2021 to 31 January 2022)
Annual escalation rate: 6,5% on 1st of February 2022
The Lease is not subject to the fulfilment of any conditions precedent.
1.5 Related party property owning company: 471 Church Street (Pty) Ltd
Property description: Erf 285, Crown Extension 8, Registration Division I.Q., Gauteng
Province, situated at 11 Lepus Road, Crown Extension 8, West
Rand)
Lease commencement date: 1 March 2021
Lease expiry date: 28 February 2022
Lease period: 12 months
Monthly rental (excluding VAT): R106 000.00
Annual escalation rate: Not applicable
The Lease is not subject to the fulfilment of any conditions precedent.
2. Related party considerations
The JSE Limited (“JSE”) has ruled that the Leases are deemed to be related party transactions in terms of the JSE
Listings Requirements as a consequence of Mr Gottschalk being a director of Value and the Lessee and furthermore,
as a result of Mr Gottschalk indirectly owning more than 20% of the shares in Value.
The estimated aggregated rental value (assuming annual escalations are applied for the full lease period) amounts
to R32 284 118.76. The aforementioned Leases will therefore be deemed “small related party transactions” in terms
of Section 10.7 of the JSE Listing Requirements.
The board of directors of Value (“the Board”) is required to provide the JSE with written confirmation from an
independent professional expert confirming that the terms of the Leases are fair insofar as Shareholders are
concerned.
Mazars Corporate Finance Proprietary Limited has been appointed as the independent professional expert by the
Board and provided the Board with fairness opinions with regard to the Leases (“Fairness Opinions”) in which they
have advised the Board that they believe that the terms of the Leases are fair to Shareholders.
The Fairness Opinions will be accessible for inspection on Value’s website at https://value.co.za/fairness-opinions/
for a period of 28 (twenty eight) days from the date of this announcement.
Johannesburg
21 June 2021
Sponsor:
Investec Bank Limited
Independent Expert:
Mazars Corporate Finance (Pty) Ltd
Date: 21-06-2021 04:42:00
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