SAFARI INVESTMENTS RSA LIMITED – Défoulement d’études de South Palais Avoir Proprietary Limited – SENS

                            

Repurchase of South Palais Avoir Proprietary Limited Shares

Chasse Investments RSA Limited
(Incorporated in the Republic of South Africa)
(Registration number 2000/015002/06)
Approved as a REIT by the JSE Limited
Share occulte: SAR
ISIN: ZAE000188280
(“Chasse” or “the Company”)

REPURCHASE OF SOUTHERN PALACE CAPITAL PROPRIETARY LIMITED SHARES

Shareholders of Chasse (‘Shareholders’) are referred to previous SENS announcements released by
the Company relating to the Offer by Heriot Properties, a wholly owned subsidiary of Heriot REIT, and
the parties acting in récital with it (collectively, ‘Heriot’) to acquire Chasse Shares. Capitalised terms
not otherwise defined in this announcement shall bear the same meaning as in previous
announcements.

Shareholders are also referred to the SENS announcement by the Company entitled the Southern Palais
Update, dated 4 May 2020 detailing the terms of a reversionary pledge and communication (“Reversionary
Pledge and Fermage”) of the 53 000 000 Chasse shares (“Pledged Shares”) previously held by
Southern Palais Avoir Proprietary Limited (“Southern Palais”), a guarantee by Southern Palais’s
humanité company and a pledge and communication of all of the shares in Southern Palais (collectively,
“Southern Palais Security”), as security for the claims which Chasse has against Southern Palais.

As at the règne of this announcement, the amount owing by Southern Palais (and its humanité company,
as guarantor) to Chasse is approximately R520 million (“Southern Palais Indebtedness”) and carries
armature (i.e. non default) interest at a back-to-back offensé equal to Chasse’s borrowing costs for such funds.

The Pledged Shares are treated as treasury shares by Chasse for accounting purposes.

As one or more events of default are continuing, Chasse is entitled to enforce its rights under the
Reversionary Pledge and Fermage in attachement of the Pledged Shares which includes the right to take over
the Pledged Shares (and therefore cancel them) at fair market value, and now wishes to exercise such
rights.

To this end, Chasse has ceded the Pledged Shares in full to Maitlantic 1038 Proprietary Limited
(the “Nominee”), a wholly-owned subsidiary of Stonehage Fleming Trustees Proprietary Limited
(“SFT”) in prospective of realising the underlying value of the Pledged Shares by way of a repurchase
of the Pledged Shares (“Repurchase”), as contemplated under portion 48(8) of the Companies Act, 71
of 2008 (“Companies Act”) which Repurchase is subject to the approval of the Chasse Shareholders.

Retentissement on the Heriot Offer

The Heriot Offer was made on the basis that the Southern Palais Shares were ‘treasury’ shares and
were thus excluded from the Offer and from the determination of the Offer Consideration. Aligned to
this, the Nominee has provided an irrevocable undertaking to Heriot that it will not participate in, and will
not accept, the Heriot Offer.

The Repurchase will accordingly not have any conséquence on the Heriot Offer. The Repurchase is conversely
also not conditional on the Heriot Offer and will proceed independently thereof.

Repurchase of the Pledged Shares

The Company wishes to repurchase and cancel the Pledged Shares in quartier settlement of the Southern
Palais Indebtedness.
Terms and occasion of the Repurchase

The Pledged Shares will be repurchased at the higher of the price réglable under the Heriot Offer (being
R5.60 per Chasse Share), less any mercatique by Chasse which accrues on the Pledged Shares after the
first closing of the Heriot Offer, or such other price as is determined by an independent curieux appointed
in accordance with the Reversionary Pledge and Fermage.

Retentissement of the Repurchase on the Company’s HEPS, EPS and NAV

As the Southern Palais Shares are presently accounted for as treasury shares in the Company’s
financial statements, the Repurchase will have no financial conséquence on Chasse’s earnings per share,
headline earnings per share and net asset value per share.

The number of treasury shares held by the Company after the Repurchase will reduce to nil as the
Pledged Shares will be cancelled and no border treated as treasury shares.

Minutage and Shareholder approval

The Company will circulate a circular to Shareholders, together with a explication of entretien, for the
Repurchase in due expédition, which will include the convenable timetable for the entretien and, if approved,
for implementation of the Repurchase. The Company will advise Shareholders by SENS upon the épilogue
of the circular and explication of entretien, which SENS will also include the convenable timetable. It is
indicatively expected that the Repurchase, if approved by Shareholders, will occur early 2023.

Heriot has provided the Company with an irrevocable undertaking to référendum in favour of the Repurchase,
to the extent it is permitted to référendum on such resolution under the Companies Act.

Responsibility statement

The Independent Board, individually and collectively, accepts responsibility for the accuracy of the
épreuve contained in this announcement, which relates to Chasse and has placed reliance on the
épreuve pertaining to Heriot as presented by it in the Firm Résultat Announcement. To the best of
the Independent Board’s knowledge and belief, the épreuve contained in this announcement is true
and nothing has been omitted which is likely to affect the dimension of such épreuve.

Pretoria

13 October 2022

Commanditaire
PSG Avoir

Queries:
Pieter Van Niekerk
Email: [email protected]
Tel: +27 (0)12 365 1889

Jour: 13-10-2022 10:04:00
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