AFRIMAT LIMITED - Voluntary Announcement Regarding The Disposal Of Unicorn Capital Partners Limited

Voluntary Announcement Regarding The Disposal Of Unicorn Capital Partners Limited

AFRIMAT LIMITED
Incorporated in the Republic of South Africa
(Registration number: 2006/022534/06)
Share code: AFT
ISIN: ZAE000086302
(“Afrimat” or “the Company”)

Voluntary announcement regarding the disposal of Unicorn Capital Partners Limited (“UCP”)

Shareholders are referred to various announcements and the combined circular to UCP
shareholders dated 9 September 2020, regarding an offer by Afrimat to acquire all of the
ordinary shares in UCP not already held by Afrimat (or by its subsidiaries) or by subsidiaries
of UCP, by way of a scheme of arrangement (“Scheme”) in terms of section 114 of the
Companies Act, No. 71 of 2008, as amended.

Following implementation of the Scheme and the subsequent delisting of UCP from the JSE
Limited, Afrimat completed an internal restructure of the UCP subsidiaries with direct interest
in the Nkomati Anthracite Mine (“Nkomati”) (“the Restructure”). The Restructure resulted in
UCP having no direct interest in Nkomati. The Company considers the restructured UCP to
not be part of Afrimat’s core diversification strategy.

During the course of 2020, UCP received several unsolicited non-binding expressions of
interest to acquire assets held by UCP. In consideration of the interest received, Afrimat took
a decision to dispose of the whole of the restructured UCP. The parties who had expressed
their interest, as well as a selection of other parties who had approached Afrimat, participated
in an accelerated disposal process for 100% of the share capital of UCP.

After following an independent and fair process, Afrimat has selected a preferred bidder and
is progressing with the conclusion of the transaction agreements for the disposal of UCP. The
selected preferred bidder’s offer provided the highest financial outcome, demonstrated the
best ability to execute and allows for the restructured UCP results to have the least impact on
Afrimat’s consolidated financial results. Afrimat’s intention is to conclude the disposal of UCP
as soon as practically possible.

The board of directors of Afrimat accepts responsibility for the information contained in this
announcement which relates to Afrimat and confirms that, to the best of its knowledge and
belief, such information which relates to Afrimat is true and this announcement does not omit
anything likely to affect the importance of such information.

Cape Town
27 January 2021

Sponsor
PSG Capital

Date: 27-01-2021 03:00:00
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