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Disclosure Regarding Disposal of Securities in Araxi
Araxi Limited
(Previously Capital Appreciation Limited)
Incorporated in the Republic of South Africa
(Registration number 2014/253277/06)
Share code: AXX ISIN: ZAE000208245
("Araxi" or "the Company" or "the Group")
DISCLOSURE REGARDING DISPOSAL OF SECURITIES IN ARAXI
Araxi has been informed that The Capital Appreciation Empowerment Trust ("CAET"), through its wholly
owned subsidiary CAET Holdings Proprietary Limited, has disposed of 40 million Araxi shares, in a block
trade at R1.85 per share. CAET has advised that the proceeds will be used to repay all of its debt and leave
its remaining assets, 35 million Araxi shares, unencumbered. CAET initially borrowed R50 million to
subscribe for shares in Capital Appreciation Limited (since renamed Araxi Limited) at the time of its listing
in 2015. The debt was initially provided by Absa Bank and subsequently refinanced with Investec.
In support of the borrowing, inter alia, CAET's shares in Araxi were pledged as security for the borrowing
and all dividends received were required to be applied to pay interest on the debt. In previous years, all
bi-annual dividends received on Araxi shares, were applied to solely meet CAET's interest obligations.
Unencumbered by debt, CAET will now be able to fulfil its mandate and use its income and principal to
provide benefits to its beneficiaries.
As a result of the sale, CAET's beneficial ownership interest in Araxi has declined to 2.71% of the shares in
issue. The Company has filed the required notice with the Takeover Regulation Panel, per section
122(3)(a) of the Companies Act, 2008.
Even though Araxi has no economic, nor any voting interest in CAET's shares in Araxi, and that the CAET
debt is non-recourse to Araxi, Araxi was required to consolidate CAET from an accounting perspective and
the Araxi shares held by CAET were deemed treasury shares. As a result, the disposal is treated as a
disposal of treasury shares and has been undertaken in compliance with paragraphs 7.32 and 7.38 of the
JSE Listings Requirements.
Following this disposal, the Company's issued share capital remains 1 291 960 171 ordinary shares, of
which 92 114 894 shares are held in treasury (including 35 000 000 still held by CAET).
The board of directors accepts responsibility for the information contained in this announcement, and
to the best of their knowledge and belief, the information is true, and this announcement does not omit
anything likely to affect the importance of the information included.
Sandton
26 June 2026
Sponsor: Investec Bank Limited
Date: 26-06-2026 03:15:00
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