DENEB INVESTMENTS LIMITED - Category 2 Disposal Announcement Deneb House, Observatory, Cape Town

Category 2 Disposal Announcement – Deneb House, Observatory, Cape Town

 DENEB INVESTMENTS LIMITED
 Registration number: 2013/091290/06
 (Incorporated in the Republic of South Africa)
 JSE share code: DNB
 ISIN: ZAE000197398
 ("Deneb" or the "Company")

CATEGORY 2 DISPOSAL ANNOUNCEMENT – DENEB HOUSE, OBSERVATORY, CAPE
TOWN

1.   INTRODUCTION

     Shareholders are advised that on 11 March 2026, the Company, through its wholly-owned
     subsidiary, Sargas (Pty) Ltd ("Seller"), entered into a sale agreement ("Agreement") with
     Hype Investments (Pty) Ltd (registration number 2025/939234/07) ("Purchaser") in terms of
     which the Seller will dispose of Erf 177212 Cape Town, measuring 4 752 square metres,
     together with all improvements thereon, situated at the corner of Main Road and Browning
     Road, Observatory, Cape Town and known as "Deneb House" ("the Property"), to the
     Purchaser, as a going concern ("Disposal").

     The Purchaser is beneficially owned by third parties, none of whom are related parties of the
     Company. The Purchaser did not consent to the disclosure of the names of its beneficial
     owners in this announcement.

2.   RATIONALE FOR THE DISPOSAL

     The disposal of the Property is aligned with Deneb's strategy to dispose of non-core assets.

3.   DISPOSAL CONSIDERATION

     The consideration of the Property is R120 million, inclusive of VAT at the rate of 0%,
     ("Disposal Consideration"), which will be payable in cash by the Purchaser on the date of
     registration of transfer of the Property into the name of the Purchaser ("Transfer Date").

     The Disposal Consideration will be secured by the Purchaser, by way of an initial cash deposit
     of R2 million to be paid into the conveyancers' trust account, and the balance thereof will be
     secured by the issue of a bank guarantee.

4.   APPLICATION OF THE DISPOSAL CONSIDERATION

     The Disposal Consideration will be applied towards general corporate purposes, including the
     settlement of debt.

5.   EFFECTIVE DATE OF THE DISPOSAL

     The effective date of the Disposal will be the Transfer Date, which is anticipated to be on or
     about the end of July 2026.

6.   CONDITIONS PRECEDENT AND SIGNIFICANT TERMS OF THE AGREEMENT

     The Agreement is subject to the fulfilment of the following conditions precedent ("Conditions
     Precedent"):

     •   delivery of the requisite board resolutions by both the Seller and the Purchaser to the
         conveyancers;
     •   payment of the deposit by the Purchaser into the conveyancers' trust account; and
     •   approval of the Disposal by the Competition Commission in terms of the Competition Act,
         1998.

     The Conditions Precedent must be fulfilled by not later than the dates specified in the
     Agreement, which dates may be extended automatically or by the parties in writing.

     The Property is sold on a voetstoots basis, and the Purchaser has conducted a due diligence
     investigation to its satisfaction.

     Certain intra-group leases will terminate on the Transfer Date, and new lease agreements
     will be concluded between the Purchaser and certain Deneb group entities in respect of
     portions of the Property, as provided for in the Agreement.

7.   FINANCIAL INFORMATION

     The value of the net assets comprising the Property as at 31 March 2025, being the date of
     the last audited consolidated annual financial statements of the Company, was R112,5 million.

     The profit after tax attributable to the Property for the year ended 31 March 2025 excluding
     revaluation, was R7,7 million, based on the unaudited management accounts of the property
     division of the Seller for the year ended 31 March 2025.

     The Company is satisfied with the quality of the relevant management accounts of the
     property division of Seller; however, shareholders are cautioned that they are unaudited.

8.   CLASSIFICATION OF THE DISPOSAL
     The Disposal constitutes a category 2 transaction in terms of the JSE Listings Requirements.

Cape Town
11 March 2026

Sponsor
PSG Capital

Date: 11-03-2026 12:00:00
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