MPACT LIMITED - CATEGORY 2 TRANSACTION ANNOUNCEMENT RELATING TO THE DISPOSAL OF THE VERSAPAK PAARL PROPERTY

CATEGORY 2 TRANSACTION ANNOUNCEMENT RELATING TO THE DISPOSAL OF THE VERSAPAK PAARL PROPERTY

MPACT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2004/025229/06)
JSE and A2X share code: MPT ISIN: ZAE000156501
("the Company" or "Mpact")

CATEGORY 2 TRANSACTION ANNOUNCEMENT RELATING TO THE DISPOSAL OF
THE VERSAPAK PAARL PROPERTY

1.   Introduction

     Mpact is pleased to advise shareholders that on 17 September
     2026, the Company, through its subsidiary Mpact Paarl
     Property Proprietary Limited (the "Seller"), entered into a
     sale of letting enterprise agreement with Inospace 5
     Proprietary Limited, which is beneficially owned by The
     Taurus Trust, with the right to nominate Inofort Proprietary
     Limited (a joint venture between Inospace 5 Proprietary
     Limited and Fortress Real Estate Investments Limited) as the
     acquiring entity (the "Purchaser"), in terms of which the
     Purchaser will acquire the property known as Erf 28634 in
     the Drakenstein Municipality, Paarl (the “Property”), as a
     going concern (the "Disposal"), for a total purchase
     consideration of R185.0 million (inclusive of VAT at the
     zero rate) (“Purchase Consideration”).

2.   Description of the Property

     The Property is located at the Corner of Borssenberg Street
     and Jan van Riebeeck Drive with a gross lettable area of 29
     541 m2.

     The Property was previously occupied by Mpact Versapak,
     formerly a division of Mpact Operations Proprietary Limited.
     In November 2024, the Mpact Versapak business was acquired
     by Versapak Proprietary Limited, a subsidiary of Sinica
     Manufacturing Proprietary Limited (“Sinica Versapak”).
     Sinica Versapak manufactures styrene and PET trays and
     punnets, as well as vinyl cling film.

     Sinica Versapak currently leases the Property from the
     Seller on market-related terms under a five-year lease
     agreement commencing on 1 November 2024 and expiring on 31
     October 2029.

3.   Rationale for the Disposal

     The   Disposal  is   consistent   with  Mpact's   portfolio
     optimisation strategy, which seeks to improve portfolio
     quality through disciplined capital allocation, the release
     of value from non-core and underutilised assets and
     investment in businesses and assets with stronger long-term
     strategic fit and growth prospects. As the Property is no
     longer utilised by Mpact's operations, the Board believes
     that the Disposal represents an appropriate opportunity to
     realise value from a non-core asset and redeploy capital in
     a manner that strengthens the balance sheet and supports the
     Group's long-term strategic objectives.

4.   Condition precedent and effective date

     The Disposal is subject to the fulfilment or waiver (to the
     extent legally permissible) of the following condition
     precedent (the "Condition Precedent"):

       •   the Seller procures the release of the mortgage bond
           held by its lenders over the Property.

     The effective date of the Disposal shall be on the transfer
     of ownership of the Property into the name of the Purchaser
     which shall be as soon as possible after the Condition
     Precedent has been fulfilled, which is anticipated to be
     during the first quarter of 2027.

5.   Payment and application of the Purchase Consideration

     The Purchaser shall pay the Purchase Consideration to the
     Seller on the transfer date. The Purchase Consideration
     shall be secured by no later than 30 (thirty) days after
     signature date by way of a bank guarantee or bank guarantees
     issued by a registered banking institution.

     The Disposal proceeds will be applied towards the settlement
     of existing debt by Mpact.

6.   Warranties and other significant terms of the Disposal

     The Disposal contains warranties, representations and
     indemnities given by the Seller in favour of the Purchaser,
     and by the Purchaser in favour of the Seller, which are
     customary for a transaction of this nature.

7.   Financial information

     The net book value of the Property (including solar
     equipment and generator systems) that is the subject of the
     Disposal was R89.2 million as per the audited annual
     financial statements for the year ended 31 December 2025.

     The rental income attributable to the Letting Enterprise was
     R19.6 million for the year ended 31 December 2025, or R17.5
     million after excluding the impact of IFRS 16 lease-
     smoothing adjustments.

     The audited annual financial statements for the year ended
     31 December 2025 were prepared in accordance with IFRS
     Accounting Standards and the South African Companies Act No.
     71 of 2008.

8.   Categorisation of the Disposal

     The Disposal constitutes a category 2 transaction as
     contemplated in paragraph 8.4 of   the  JSE  Listing
     Requirements. The Disposal is not subject to approval by
     Mpact shareholders.


Melrose Arch
18 September 2026

Sponsor
The Standard Bank of South Africa Limited
Date: 18/09/2026 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.