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AFRICAN EQUITY EMPOWERMENT INVESTMENTS LIMITED - Termination of Discussions Regarding the Subscription of Shares by AYO In Bowwood
2020/09/22 07:30:00Download PDF Stock report
Termination of Discussions Regarding the Subscription of Shares by AYO In Bowwood AFRICAN EQUITY EMPOWERMENT INVESTMENTS LIMITED (Incorporated in the Republic of South Africa) Registration number 1996/006093/06 Share code: AEE ISIN: ZAE000195731 ('AEEI' or “the Company”) TERMINATION OF DISCUSSIONS REGARDING THE SUBSCRIPTION OF SHARES BY AYO IN BOWWOOD 1. Introduction Shareholders are referred to the announcements released on SENS on 1 June 2020, 11 August 2020 and 21 August 2020. Using the definitions therein, Shareholders are hereby advised that discussions between SGT and Bowwood have been mutually terminated. 2. Reason for termination of discussions Shareholders are referred to the announcements released on SENS on 19 May 2015 and 26 November 2015 (collectively the “SGD Acquisition Announcements”). Using the definitions within the SGD Acquisition Announcements, Shareholders were advised of the acquisition by Bowwood of 25% + 1 share in SGD from SAAB in 2015. As set out in the SGD Acquisition Announcements, SAAB was issued with a call option at the time of acquisition in 2015, which allowed it to repurchase the Subject Shares from Bowwood at the higher of an amount equal to the redemption consideration in respect of the IBL Preference Shares and the fair market value of the Subject Shares. As the IBL Preference Shares have been redeemed, should SAAB exercise such call option, it will be exercisable at the market value of the Subject Shares at the expiry of the 60-month period stipulated in the shareholders agreement i.e. from 1 October 2020. SAAB has provided correspondence to Bowwood that indicates that it intends to exercise the call option when the 60-month period in the shareholders agreement has lapsed. Consequently, SGT and Bowwood have mutually terminated negotiations to allow for the process with SAAB to be concluded. As a result of the termination of the above negotiations, the process to prepare a Circular to obtain approval from Shareholders to approve the Transaction is no longer required. Cape Town 22 September 2020 Joint Sponsor Vunani Sponsors Joint Sponsor Merchantec Capital Date: 22-09-2020 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.