AFRISTRAT INVESTMENT HOLDINGS LIMITED – Reverse stock split: cash payment for fractional rights – SENS

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Share Consolidation: Cash Payment in Respect of Fractional Entitlements

AFRISTRAT INVESTMENT HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number: 1998/013215/06
JSE Code: ATI – ISIN: ZAE000305959
Debt Issuer Code: ATID
Hybrid Issuer Code: ATIG
(“Afristrat” or “the Company”)

SHARE CONSOLIDATION: CASH PAYMENT IN RESPECT OF FRACTIONAL ENTITLEMENTS

1. INTRODUCTION

1.1 Ordinary Shareholders are referred to the various announcements released on SENS, the last of
which was dated Tuesday, 15 March 2022, relating to the proposed acquisition by Afristrat of
MHMK Financial Services, the share consolidation of the Company’s issued share capital on a 120
to 1 basis (“Share Consolidation”) and the implementation of an employee share scheme
(collectively, the “Proposed Transaction”).
1.2 Ordinary Shareholders are further referred to the circular regarding the Proposed Transaction,
which was distributed on Monday, 13 December 2021 (“Circular”).
1.3 Terms defined in the Circular shall, unless otherwise stated, bear the same meaning in this
announcement.

2. SHARE CONSOLIDATION

2.1 In implementing the Share Consolidation, an Ordinary Shareholder becoming entitled to a fraction
of a share arising from the Share Consolidation (“Fractional Entitlement”) will be rounded down
to the nearest whole number, resulting in the allocation of whole shares and a cash payment for
the fraction (“Cash Payment”). The value of such Cash Payment will be the volume weighted
average price (“VWAP”) per Ordinary Share traded on the securities exchange operated by the
JSE Limited (“JSE”) on Wednesday, 6 April 2022 (being the first day of trade after the Share
Consolidation LDT in order to participate in the Share Consolidation), discounted by 10%.
2.2 The VWAP of Ordinary Shares traded on the JSE on Wednesday, 6 April 2022 was 0,46100 cents
per Ordinary Share. This amount, discounted by 10%, is 0,41490 per Ordinary Share, which
amount will be used to determine the Cash Payment for the Fractional Entitlements.
2.3 Ordinary Shareholders are informed that, as far as the tax implications of the Cash Payment of the
Fractional Entitlements are concerned, the receipt of the Cash Payment will not be subject to
dividend withholding tax.

3. EXCHANGE CONTROL REGULATIONS

3.1 In the case of Certificated Ordinary Shareholders whose registered addresses in the Register in
South Africa are outside the Common Monetary Area, or where the relevant certificates are
restrictively endorsed in terms of the Exchange Control Regulations, the following will apply:

3.1.1 Non-residents who are emigrants from the Common Monetary Area
The replacement share certificate reflecting the Share Consolidation will be restrictively endorsed
in terms of the Exchange Control Regulations and will be sent to the Ordinary Shareholders’
authorised dealer in foreign exchange in South Africa controlling their blocked assets.
3.1.2 All other non-residents
The replacement share certificate reflecting the Share Consolidation will be restrictively endorsed
‘non-resident’ in terms of the Exchange Control Regulations.
3.1.3 Ordinary Shareholders, who are Foreign Ordinary Shareholders must satisfy themselves as
to the full observance of the Laws of any relevant jurisdiction, including (without limitation)
obtaining any requisite Governmental or other consents, observing any other requisite
formalities and paying any issue, transfer or other taxes due in such jurisdiction. If in doubt,
Foreign Ordinary Shareholders should consult their professional advisors immediately.

3.2 The tax position of an Ordinary Shareholder under the Proposed Transaction is dependent on such
Ordinary Shareholder’s individual circumstances. This announcement is a general guide and is not
intended to constitute a complete analysis of the taxation consequences of the Cash Payment of
Fractional Entitlements in terms of South African taxation law. It is not intended to be, nor should
it be considered as legal or taxation advice. The Company and its advisers cannot be held
responsible for the taxation consequences that the Share Consolidation may have on individual
Ordinary Shareholders and therefore any Ordinary Shareholder who is in doubt as to its position,
including, without limitation, its tax status, should consult an appropriate independent professional
advisor in the relevant jurisdiction without delay.
3.3 The salient dates and times announced by the Company on Tuesday, 15 March 2022 remain
unchanged.

7 April 2022
Pretoria

Sponsor
Merchantec Capital

Corporate Advisor
YW Capital

Legal Advisor
Webber Wentzel

Date: 07-04-2022 10:32:00
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