AVENG LIMITED - Disposal of properties announcemen2 Aug 2018
AEG AEGCB 201808020045A
Disposal of properties announcement

AVENG LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1944/018119/06)
Share code: AEG
Share ISIN: ZAE000194940
JSE 2019 Convertible Bond Code: AEGCB
JSE 2019 Convertible Bond ISIN: ZAE000194940
("Aveng", "the Company")

DISPOSAL OF PROPERTIES ANNOUNCEMENT

In February 2018, Aveng announced the results of its strategic review (the "Strategic Review") following a
thorough and robust interrogation of all parts of the organisation to identify businesses and assets that
support its long-term strategy of becoming an international infrastructure and resources group with a
footprint in developing and fast-growing regions and with access across the chosen markets. As part of
this Strategic Review, the Group announced that it intends to dispose of certain non-core assets and
properties.

As part of this strategy the Group has reached agreement on the disposal of two properties, namely Jet
Park and the Van der Bijl Park property.

Jet Park Sale
The Group has entered into a binding term sheet for the sale of its Jet Park offices located in Boksburg to
Equites Property Fund Limited (“Equites”). The salient features of the transaction are:

    •   Sale proceeds of R211.2m, net of commission;
    •   Aveng will enter into a triple net lease on the property for a maximum of 24 months, but with the
        ability for Aveng to terminate the lease with 3 months notice; and
    •   market related monthly rental of R1.1m, subject to an annual escalation of 8%.

The transaction is subject to conditions precedent that are normal for such transactions, including the
signing of the necessary transaction documentation, Equites successfully concluding a due diligence
within 21 days from date of signature of final agreements and the parties are obtaining the necessary
regulatory approvals and consents. It is expected that the transaction will be effective by 1 December
2018, with transfer of the property taking place as soon as reasonably possible thereafter.

The above transaction is a Category 1 transaction in terms of section 9 of the JSE Listings Requirements
and accordingly requires shareholder approval. A circular detailing the terms of the transaction and
incorporating a notice convening a general meeting of Aveng shareholders will be posted to Aveng
shareholders in due course.

Van der Bijl Park Sale
The Group has agreed to accept an offer of R42.6m from Stodasat (Proprietary) Limited for the van der
Bijl Park property following an auction process. The transaction is not subject to any conditions
precedent. The transfer is expected to be complete by 30 September 2018, subject to any delays in the
conveyancing process. This transaction is a Category 2 transaction in terms of section 9 of the JSE
Listings Requirements.



Use of proceeds
As outlined in the Strategic Review, the proceeds from the two sales will be used to strengthen the
financial position of the Group and to reduce overall debt.

Financial information

    •   The net asset value and profits attributable to the Jet Park Sale as at 31 December 2017 are as
        follows: R124.4m and R86.8m.
    •   The net asset value and loss attributable to the van der Bijl Park Sale as at 31 December 2017
        are as follows: R100.0m and R57.4m.

The above financial information was extracted from the Group's reviewed interim condensed consolidated
financial statements for the six months ended 31 December 2017 which have been prepared in
accordance with International Financial Reporting Standards.

Given the nature of these sale assets, there is no net profit before tax attributed to these sale assets for
the period ended 31 December 2017.



Jet Park
2 August 2018

JSE Sponsor
UBS South Africa Proprietary Limited

Legal advisors
Baker McKenzie

Debt sponsor
Absa Bank Limited, acting through its corporate and investment banking division



Michael Canterbury
Group Executive: Strategy & Investor Relations
Tel: 011 779 2979
Email: michael.canterbury@avenggroup.com

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