Deneb Investments Limited (JSE:DNB) News - Category 2 Disposal Announcement DENEB INVESTMENTS LIMITED Registration number: 2013/091290/06 (Incorporated in the Republic of South Africa) JSE share code: DNB ISIN: ZAE000197398 (“Deneb” or the “Company”) CATEGORY 2 DISPOSAL ANNOUNCEMENT 1. INTRODUCTION Shareholders are advised that the Company, through its wholly-owned subsidiary, Sargas Proprietary Limited has entered into an agreement (“Agreement”) with The Lansdowne Trust (IT479/03) (“Purchaser”), in terms of which the Company will dispose of the industrial properties situated at (i) Erf 3812 Mobeni Registration Division FT Province of Kwazulu Natal, in extent, 1,9486 hectares and (ii) Erf 485 Mobeni Registration Division FT Province of Kwazulu Natal, in extent, 4 222 square meters, in Nottingham Road, Mobeni, KwaZulu Natal together with existing lease, to the Purchaser, as a going concern, for a disposal consideration of R55 000 000 (“Disposal Consideration”) (“Disposal”). 2. RATIONALE FOR THE DISPOSAL The Properties are no longer required by the Company or any of its subsidiaries (“Group”), as the Group no longer conducts the manufacturing operations at the Properties. 3. DISPOSAL CONSIDERATION The Disposal Consideration of R55 000 000 will be paid in cash by the Purchaser on the Transfer Date (as defined below). 4. APPLICATION OF THE DISPOSAL CONSIDERATION The Disposal Consideration will be used to settle outstanding debt. 5. CONDITIONS PRECEDENT There are no outstanding conditions precedent to the Disposal. 6. EFFECTIVE DATE OF THE DISPOSAL The effective date of the Disposal will be the date of registration of transfer of the Properties into the name of the Purchaser (“Transfer Date”), which is anticipated as being on or about 30 September 2021. 7. WARRANTIES AND OTHER SIGNIFICANT TERMS OF THE AGREEMENT The Agreement contains warranties, representations and undertakings by the Company in favour of the Purchaser and by the Purchaser in favour of the Company, which are standard for a transaction of this nature. The Properties are sold “voetstoots”. 8. FINANCIAL INFORMATION The value of the net assets comprising the Properties as at 31 March 2021, being the date of the last reviewed condensed consolidated financial results, was R54 900 000. The profits after tax attributable to the Properties for the year ended 31 March 2021, was R5 002 411, based on the management accounts of the property division of Sargas Proprietary Limited for the year ended 31 March 2021 (“the management accounts”). The Company is satisfied with the quality of the management accounts; however, shareholders are cautioned that they are unaudited. 9. CLASSIFICATION OF THE DISPOSAL The Disposal constitutes a category 2 transaction in terms of the JSE Limited Listings Requirements. 2 June 2021 Sponsor and Corporate Advisor PSG Capital Date: 02-06-2021 05:10:00 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.