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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 337 and portion 1 to 4 of Erf 420, Isando Extension 1,
Township, Gauteng Province situated at 49 and 47A, B, C, D and
E Brewery Road, Isando
Lease commencement date: 1 February 2021
Lease expiring date: 31 January 2024
Lease period: 3 years
Monthly rental (excluding VAT): R562 000.00
Annual escalation rate: 6,5%
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: Erf 335 and neighbouring portion of Erf 686 (parking), Isando
Extension 1, Kempton Park, Johannesburg, Gauteng Province,
situated at No. 42 Monteer Road, Isando, Extension 1,
Johannesburg
Lease commencement date: 1 October 2020
Lease expiring date: Subject to 1 calendar month’s written notice of termination.
Lease period: Month to Month basis
Monthly rental (excluding VAT): R25 891.88 (October 2020)
R51 783.75 (November 2020)
R60 000.00 (December 2020 onwards)
Annual escalation rate: 6.5%
The Lease is not subject to the fulfilment of any conditions precedent.
1.3 Related party property owning company: 471 Church Street (Pty) Ltd
Property description: Erf 626 Wells Estate, in the Nelson Mandela Metropolitan
Municipality division of Uitenhage, Province of the Eastern Cape
situated at No. 386 Chevrolet Street, Markham Industrial Estate,
Wells Estate, Port Elizabeth
Lease commencement date: 1 November 2020
Lease expiring date: 31 October 2022
Lease period: 2 years
Monthly rental (excluding VAT): R187 000.00
Annual escalation rate: 6%
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 R26,395,889.03. 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
20 January 2021
Sponsor:
Investec Bank Limited
Independent Expert:
Mazars Corporate Finance (Pty) Ltd
Date: 20-01-2021 08:53:00
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