| Thu 30 Apr 2020, 15:23 | | VALUE GROUP LIMITED - Announcement relating to a Small Related Party Transaction |
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Announcement relating to a Small Related Party Transaction:
Announcement relating to a Small Related Party Transaction
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”)
ANNOUNCEMENT RELATING TO A SMALL RELATED PARTY TRANSACTION
1. Introduction, rationale and salient terms
Value provides a comprehensive range of tailored logistics solutions and FMCG products
throughout South Africa. Its customer base consists of a number of multi-national and
national entities. Over the last three years, Value has obtained a Level 3 BBBEE rating,
thus enabling its customers to obtain a 110% benefit on their procurement spend. This
level was achieved by implementing various initiatives over a number of years in order to
improve Value’s BBBEE rating. In 2009, an interest free loan was advanced to a BBBEE
close corporation, SKR Marketing CC (“SKR”), thus contributing to achieving maximum
score on the enterprise development category of the BBBEE scorecard.
Shareholders of Value are advised that Value Logistics Limited (a wholly owned
subsidiary of Value) has granted a 2 year repayment extension on the total outstanding
loan value, amounting to R3 417 500, from 31 March 2020 to 31 March 2022. The
rationale for this extension is to enable and assist Value in continuing to maintain its
BBBEE rating.
2. Related party considerations
In terms of Section 10.2 of the JSE Listings Requirements, the SKR Loan Receivable
balance of R3,417,500 is deemed to be a small related party transaction as a
consequence of a member of SKR being the spouse of Mr. M. Padiyachy, a director of
Value.
In terms of paragraph 10.7(b) of the JSE Listings 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 repayment extension period is fair
insofar as Shareholders are concerned.
Mazars Corporate Finance Proprietary Limited (“Mazars Corporate Finance”) has been
appointed as the independent professional expert by the Board and provided the Board
with a fairness opinion with regards to the extension of the repayment period (“Fairness
Opinion”) in which they have advised the Board that they believe that this extension of
the repayment period is fair to Shareholders.
The Fairness Opinions will be accessible for inspection on Value’s website at
https://value.co.za/wp-content/uploads/2020/04/Value-Group-Fairness-Opinion-
FINAL.pdf for a period of 28 (twenty eight) days from the date of this announcement.
Johannesburg
30 April 2020
Sponsor:
Investec Bank Limited
Independent Expert:
Mazars Corporate Finance (Pty) Ltd
Date: 30-04-2020 03:23:00
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