AFRIMAT LIMITED - Afrimat Rainbow Capital Proprietary Limited's offer to acquire a significant minority stake in Afrimat
AFT 201609230001A
Afrimat Rainbow Capital Proprietary Limited's offer to acquire a significant minority stake in Afrimat
Afrimat Limited
Incorporated in the Republic of South Africa
(Registration number: 2006/022534/06)
Share code: AFT ISIN: ZAE000086302
(“Afrimat” or “the Company”)
AFRICAN RAINBOW CAPITAL PROPRIETARY LIMITED’S OFFER TO ACQUIRE A SIGNIFICANT
MINORITY STAKE IN AFRIMAT
The board of directors of Afrimat is pleased to announce that African Rainbow Capital Proprietary
Limited (‘ARC’) has offered to purchase 26,300,000 shares in Afrimat, which comprises approximately
18.36% of the share capital in Afrimat, from Afrimat Empowerment Investments Proprietary Limited
(‘AEI’). The transaction is subject to various conditions precedent, including the participants of the
Afrimat BEE Trust voting in favour of the offer.
ARC is a fully black owned and controlled investment company focusing on businesses that deliver
exceptional returns on equity. ARC is a strategic long-term investor with no predefined exit strategy.
They invest in businesses that can grow organically or acquisitively and ARC can enable and
accelerate this growth by providing funding where necessary.
Afrimat’s chief executive Andries van Heerden said that “Afrimat is of the view that this will create a
long-term and sustainable BEE partner with certainty around shareholding which will build further
value for Afrimat. ARC has also shown a willingness in wanting to work with Afrimat on our proposed
growth strategy.”
The purchase of Afrimat shares by ARC will facilitate the settlement of all debt outstanding in relation
to the Afrimat shares held by AEI and the distribution of the economic benefits under the current
scheme to its participants, who are all black employees. The transaction is subject to a number of
conditions precedent which includes approval of the offer by the participants of the Afrimat BEE Trust.
ARC has agreed to be locked in for at least four years on successful conclusion of the purchase of the
Afrimat shares.
In order to facilitate the purchase of Afrimat shares by ARC, the current trust deed of the Afrimat BEE
Trust is being amended. These changes will be sent to Afrimat shareholders in a circular and will also
be provided to scheme participants for approval.
Cape Town
23 September 2016
Sponsor: Bridge Capital Advisors Proprietary Limited
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