Sygnia Limited (JSE:SYG) News - Announcement Regarding Related Party Transactions SYGNIA LIMITED (Incorporated in the Republic of South Africa) (Registration number 2007/025416/06) Share code on the JSE and A2X: SYG ISIN: ZAE000208815 (“Sygnia” or “the Company”) ANNOUNCEMENT REGARDING RELATED PARTY TRANSACTIONS BETWEEN SYGNIA ASSET MANAGEMENT (PTY) LTD, BERET PROPERTIES (PTY) LTD AND WIDOK PROPERTIES (PTY) LTD Introduction and renewal of Lease Agreements Shareholders are advised that Sygnia Asset Management Proprietary Limited (“SAM”), a subsidiary of Sygnia, has entered into agreements in terms of which it has renewed certain lease agreements with related parties (“Transactions”). In terms of Section 10.1 of the Listings Requirements of the JSE Limited (“JSE”) the Transactions are categorised in the aggregate as a small related party transaction. The details relating to the Transactions are set out below. Lease Terms SAM has entered into renewals of its property lease agreements as follows: - The Foundry, Cardiff Street, Green Point, Cape Town, 8001 in terms of the following lease agreements commencing on 1 March 2020 and terminating on one month’s written notice by SAM (to terminate automatically on 28 February 2023): - between Beret Properties Proprietary Limited (“Beret”) and SAM for a portion of the 5th floor; - between Widok Properties Proprietary Limited (“Widok”) and SAM for a portion of the 6th and 7th floors and 66 parking bays in the parking garage; - the aggregate gross monthly rental is R620,188.80 (excluding VAT) escalating at 8.0% per annum. - Katherine and West Building, West Street, Johannesburg, Sandton, 2196 in terms of a lease agreement between Beret and SAM for unit 40 on the 7th floor and 37 parking bays, commencing on 1 March 2020 and terminating on one month’s written notice by SAM (to terminate automatically on 28 February 2023). The aggregate gross monthly rental is R290,940.30 (excluding VAT) escalating at 8.0% per annum. - Newport House, 57 Prestwich Street, De Waterkant, Cape Town, 8001 in terms of the following lease agreements between Beret and SAM for a portion of the 1st, 2nd and 3rd floors and 35 parking bays: - commencing on 1 March 2018 and terminating on 29 February 2020. The aggregate gross monthly rental is R315,475.00 (excluding VAT) escalating at 7.5% per annum. - commencing on 1 March 2020 and terminating on one month’s written notice by SAM (to terminate automatically on 28 February 2023). The aggregate gross monthly rental is R347,749.70 escalating at 8.0% per annum. (collectively the “Agreements”). Related Party Considerations Magda Wierzycka (“MW”) is a related party to the Company as she is the Executive Chairman of Sygnia and a material shareholder in Sygnia via her associate, The Zatoka Trust, and her spouse, Mr Simon Peile. Beret and Widok are 100% owned by The Zatoka Trust and are associates of MW (as defined in section 10.1(b)(vii) of the JSE Listings Requirements read together with the definition of “associate”). The entering into of the Agreements constitutes a small related party transaction as per the JSE Listings Requirements and in terms of Section 10.7 of the JSE Listings Requirements the Company is required to provide the JSE with written confirmation from an independent professional expert confirming whether the terms and conditions of the Agreements are fair insofar as the shareholders of Sygnia (“Shareholders”) are concerned. Independent fairness opinion In compliance with paragraph 10.7(b) of the JSE Listings Requirements, BDO Corporate Finance (Pty) Ltd ("BDO") was appointed by the Company as the independent professional expert and has furnished the Sygnia board of directors with its opinion (“Independent Expert Opinion”) confirming that the terms of the Transactions are fair insofar as the Shareholders are concerned. The Independent Expert Opinion is currently being reviewed by the JSE, whereafter it will lie open for inspection at Sygnia’s registered office, 7th Floor, The Foundry, Cardiff Street, Cape Town, 8001, for a period of 28 days from the date of issue. Shareholders will be advised further in this regard. Cape Town 30 June 2021 Sponsor The Standard Bank of South Africa Limited Independent Expert BDO Corporate Finance Date: 30-06-2021 04:30:00 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.