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Category 2 disposal announcement
ARGENT INDUSTRIAL LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1993/002054/06)
Share code: ART
ISIN: ZAE000019188
("Argent" or "the Company")
CATEGORY 2 DISPOSAL ANNOUNCEMENT
1. INTRODUCTION
As disclosed in the Company's unaudited and unreviewed interim consolidated results for
the six months ended 30 September 2023, which was published on 21 November 2023,
the Company, through its wholly owned subsidiary Argent Industrial Investments (Pty) Ltd
("Seller"), concluded a sale and leaseback agreement for the Phoenix Steel properties
situated in Gauteng.
Shareholders are advised that on 31 July 2023, the Seller entered into an agreement,
which was amended on 18 January 2024 ("Agreement"), with Amnem Investments (Pty)
Ltd ("Purchaser") (beneficially owned by South African residents, none of which are
related parties of the Company), in terms of which the Seller will dispose of Erven 713
and 714 South Germiston Extension 7, situated at 13 Jack Pienaar Street, South
Germiston together with the lease agreement in respect thereof ("Property"), to the
Purchaser, as a going concern, for a disposal consideration of R45 400 000 ("Disposal
Consideration") ("Disposal").
2. RATIONALE FOR THE DISPOSAL
The Property is not considered core to the strategy of the Company, and the Disposal
aims to decrease the Argent group's current property portfolio.
3. DISPOSAL CONSIDERATION
The Disposal Consideration is payable by way of a deposit of 5% within 3 days of the
Agreement becoming unconditional, with the balance to be secured by way of a written
guarantee from a registered financial institution, payable 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 the outstanding debt secured by way of
a mortgage bond over the Property, and the remaining consideration will be used to
repurchase Argent shares, in terms of the Company's existing general authority to
repurchase shares.
5. CONDITIONS PRECEDENT AND EFFECTIVE DATE OF THE DISPOSAL
The Agreement is not subject to the fulfilment of any outstanding conditions precedent,
and the effective date of the Disposal will be the date of registration of transfer of the
Property into the name of the Purchaser ("Transfer Date"), which is anticipated as being
on or about the end of February 2024.
6. FINANCIAL INFORMATION
The value of the net assets comprising the Property as at 31 March 2023, being the date
of the last audited consolidated financial statements of the Company, was
R41 389 389.05.
The profit after tax attributable to the Property for the year ended 31 March 2023, was
approximately R2 118 436.41, based on the audited financial statements of the Seller, for
the year ended 31 March 2023.
7. WARRANTIES AND OTHER SIGNIFICANT TERMS OF THE AGREEMENT
The Agreement contains representations and warranties by the Seller in favour of the
Purchaser which are standard for a transaction of this nature.
The terms and conditions of the lease agreement concluded between the Purchaser and
the existing tenant of the Property, Phoenix Steel Group (Pty) Ltd, including the rental
payments, are market related.
8. CLASSIFICATION OF THE DISPOSAL
The Disposal constitutes a category 2 transaction in terms of the JSE Limited Listings
Requirements.
Durban
30 January 2024
Sponsor
PSG Capital
Date: 30-01-2024 03:00:00
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