HOSKEN CONSOLIDATED INVESTMENTS LIMITED - Change Statement and posting of Notice of Annual General Meeting

Change Statement and posting of Notice of Annual General Meeting

HOSKEN CONSOLIDATED INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1973/007111/06)
(Share code: HCI & ISIN: ZAE000003257)
(“HCI” or “Company”)

CHANGE STATEMENT AND POSTING OF NOTICE OF ANNUAL GENERAL MEETING

Shareholders are hereby advised that HCI’s annual financial statements for the year ended 31
March 2021 are available at https://www.hci.co.za/reports/HCI_AFS_2021.pdf

Shareholders are further advised that the notice of annual general meeting, containing the
summarised consolidated financial statements for the year ended 31 March 2021, was
dispatched to shareholders today, 30 July 2021. The notice of meeting is also available at
https://www.hci.co.za/reports/notice_of_meeting_2021.pdf

CHANGE STATEMENT

The audited annual financial statements of the Company for the year ended 31 March 2021, on
which its auditors expressed an unmodified audit opinion, contain the following change to the
reviewed provisional results for the year ended 31 March 2021 as published on SENS on 28
May 2021:

As detailed in the previously published results, the Group was considered to have lost control of
Tsogo Sun Hotels (“TSH”) during December 2020, resulting in the Group being deemed to have
disposed of its interest in TSH and acquiring an associate interest in same.

On recognition of the Group’s associate interest in TSH, a gain on bargain purchase of R2 094
million, being the excess of its share of the net fair value of TSH’s identifiable assets and
liabilities over the cost of its investment, which should have been included as income in the
determination of the Group’s share of TSH’s profit in the period since acquisition, had not been
recognised. Following this upward adjustment of the carrying value of the Group’s interest in
TSH, an indicator of impairment existed at the reporting date, resulting in the recognition of an
impairment of the investment by R1 565 million.

The recognition of the excess of the Group’s share of the net fair value of TSH’s identifiable
assets and liabilities over the cost of its investment and subsequent impairment resulted in the
following changes, as compared to the reviewed provisional results:

Loss for the year attributable to equity holders of the parent
As previously stated: R1 420.6 million
As adjusted: R960.0 million

Basic losses per share
As previously stated: 1 757 cents
As adjusted: 1 187 cents

Equity attributable to equity holders of the parent
As previously stated: R11 666 million
As adjusted: R12 126 million

Net asset carrying value per share
As previously stated: 14 425 cents
As adjusted: 14 995 cents

Headline earnings and headline earnings per share were unaffected by the adjustment.

The accounting in respect of the acquisition is provisional as at the reporting date, and will be
finalised within 12 months from the acquisition.

Due to the changes above, the Company has released abridged results for the year ended 31
March 2021, which contain the adjustments described. These results are available at
https://www.hci.co.za/reports/HCI_results_march2021.pdf and have been published on SENS
today, 30 July 2021.

NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the annual general meeting (“AGM”) will be held at 12:00 on
Monday 30 August 2021, at the registered offices of the Company, Suite 801, 76 Regent Road,
Sea Point to transact the business as set out in the notice of AGM.

The date on which shareholders must be recorded as such in the share register of the
Company to be eligible to vote at the AGM is Friday 20 August, 2021 and the last day to trade
is Tuesday, 17 August 2021.


Cape Town
30 July 2021
Sponsor: Investec Bank Limited

Date: 30-07-2021 04:01:00
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