A E C I LIMITED - AECI concludes a binding memorandum of agreement to dispose of its public water division

AECI concludes a binding memorandum of agreement to dispose of its public water division

AECI LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1924/002590/06
Share code: AFE ISIN: ZAE000000220
Hybrid code: AFEP ISIN: ZAE000000238
Bond company code: AECI
LEI: 3789008641F1D3D90E85
(AECI or the Group or the Company)

AECI CONCLUDES A BINDING MEMORANDUM OF AGREEMENT TO DISPOSE OF ITS PUBLIC WATER DIVISION

Shareholders and noteholders are advised that, on 28 March 2025, AECI, through its wholly owned subsidiary,
Improchem Proprietary Limited (Improchem), entered into a binding memorandum of agreement for the disposal of
Improchem's Public Water business (Public Water Business), (Proposed Transaction), to a South African majority
black-owned special purpose vehicle (the Purchaser), with Nsukutech Proprietary Limited (Nsukutech) as the
controlling shareholder and Junaco (T) Limited (incorporated in Tanzania) (Junaco), as the minority shareholder.

The Public Water Business is a separate division of Improchem's water business and includes the manufacturing
and supplying of water treatment chemicals, providing engineered water treatment solutions and supplying other
complementary products to the public water sector.

Nsukutech specialises in the manufacture of speciality chemicals for water treatment, mineral processing and other
applications. Junaco is a Tanzanian-based company and a leading supplier of water treatment chemicals and
equipment across Eastern and Southern Africa. Junaco has played a key role in the export of AECI's water treatment
chemicals across Africa, with a partnership that has spanned over 15 years.

The Public Water Business will continue supplying its direct clients and distributor network in anticipation of a smooth
transition of assets, capacity and contractual opportunities to the Purchaser and will ensure continuity of service and
supply into the public water market, once the Proposed Transaction is concluded.

The Proposed Transaction is conditional on the parties entering into the relevant definitive transaction agreements
and related ancillary arrangements, as well as the receipt of the required regulatory approvals, including competition
approval. Subject to the finalisation and agreement of the definitive terms, it is envisaged that the Proposed
Transaction will fall below the threshold for categorisation in terms of the JSE Limited Listings Requirements.

AECI Group CEO, Holger Riemensperger said: "Divesting our Public Water Division delivers on our strategy to
dispose of non-core assets, streamline operations and optimise our portfolio. It will support our capital allocation
strategy and position AECI for sustainable growth and to focus on improving the performance of our core business."


Woodmead, Sandton
31 March 2025

Equity Sponsor: One Capital

Debt Sponsor: Questco Corporate Advisory

Date: 31-03-2025 09:37:00
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