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ARGENT INDUSTRIAL LIMITED - Disposal of Paint Business

Release Date: 02/02/2018 16:40
Code(s): ART     PDF:  
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Disposal of Paint Business

Argent Industrial Limited
(Registration number 1993/002054/06)
(Incorporated in the Republic of South Africa)
Share Code: ART
ISIN: ZAE000019188
(“Argent” or “the Company”)

DISPOSAL OF PAINT BUSINESS

1. Introduction and rationale

Argent is pleased to announce that it has entered into agreements
to dispose of the plant, equipment, finished and raw material,
commercial vehicles as well as the property situated at Erf 1809
and Erf 1950, Silverton extension 12 (“the Property”) (“the
assets”), to Freecall Trading 7 Proprietary Limited and Promac
Paints Proprietary Limited (collectively, “the Purchaser”) for
an estimated purchase consideration of R51 million (“the
Transaction”).

The rationale for the Transaction is to exit the paint
manufacturing and retail industries.

2. The description of the Assets

The assets are used in the development, manufacture and
distribution of paint though various national depots.

3.  The consideration

The purchase consideration of approximately R51 million is to
be settled in cash upon the fulfilment of the outstanding
conditions precedent to the Transaction. The purchase
consideration will be adjusted according to the value of the
Assets as per the general ledger of the seller plus VAT
payable on the Effective Date.

4. Conditions precedent

The Transaction is subject to the fulfilment of the following
outstanding conditions precedent:

4.1 Approval by the Purchaser’s bankers to provide partial
    funding for the Transaction;
4.2 The successful registration of the Property in the name of
    the Purchaser; and
4.3 Other conditions that are customary for a transaction of
    this nature.

5. Effective date

The effective date of the Transaction is the commencement of
business on the first day of the month succeeding the month in
which the conditions are fulfilled for all the Assets other
than the effective date of the disposal of the Property which
will be the date of registration of the Property in the name
of the Purchaser.

6.  Financial Information

6.1 The net value of the Assets amounts to R 48.5 million.

6.2 The profits attributable to the Assets amounts to R 1.8
    million after taxation.

6.3 The financial information contained in this announcement
    has not been reviewed or reported on by Argent’s auditors.

6.4 The proceeds of the Transaction will be used to settle
    existing banking facilities and to buy back Argents shares
    as per the shareholder approval at the Annual General
    Meeting on 30 August 2017.

7.  Categorisation

7.1   As the Transaction amounts to more than 5% but less than
      30% of the market capitalisation, the Transaction is
      classified as a category 2 transaction in terms of
      paragraph 9.5 of the JSE Listings Requirements.

7.2   This announcement is made for information purposes only and
      no action is required by Argent shareholders with regards
      to the Transaction.

Umhlanga
2 February 2018

Sponsor: PSG Capital Proprietary Limited

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