Category 2 Acquisition Announcement
EFORA ENERGY LIMITED (Incorporated in the Republic of South Africa) (Registration number 1993/000460/06) JSE Share Code: EEL ISIN: ZAE000248258 ("Efora" or "the Company") CATEGORY 2 ACQUISITION ANNOUNCEMENT 1. INTRODUCTION Shareholders are advised that on 19 December 2023, the Company entered into agreements ("Agreements") with Force Fuel Properties Proprietary Limited ("FFP") and Force Fuel Proprietary Limited ("FF") (both in liquidation). The beneficial owner of both entities is Labat Africa Limited, in terms of which the Company will purchase the immovable property described as Erf 382 Alrode Extension 5 Township ("the Property") from FFP and certain movable assets ("Movable Assets") from FF ("the Sellers") for a total purchase consideration of R3 800 000 ("Purchase Consideration") ("the Acquisition"). The Purchase Consideration reflects the fair value of both the Property and the Movable Assets ("the Assets") and there is no profit associated with the Assets. 2. DESCRIPTION OF THE ACQUSITION The Property is situated in the province of Gauteng, measuring 3 600 square metres with the physical address at 34 Flamink Road, Alrode Extension 5, Alberton, Gauteng. The Movable Assets comprise of office furniture, fuel pumps and other assets which are detailed in an annexure of the Agreements. 3. RATIONALE FOR THE ACQUISITION The Acquisition will serve to support the wholesale pillar of the Company's overall business strategy and will provide storage in a key industrial node, close to major oil companies, which supports the Company's supply chain either directly or indirectly. 4. PURCHASE CONSIDERATION The Purchase Consideration payable by the Company to the Sellers in terms of the Agreements is R3 800 000 (three million eight hundred thousand Rand) of which the consideration for the acquisition of the Property is R3 600 000 (three million six hundred thousand Rand) and the consideration for the acquisition of the Moveable Assets is R200 000 (two hundred thousand Rand). The Purchase Consideration will be paid by the Company on the date of the transfer of ownership of the Property from the Sellers to the Company in the applicable deeds registry. The Purchase Consideration will be funded by the Company from available cash resources. 5. CONDITIONS PRECEDENT At the date of this SENS announcement, the Board of Directors of the Company has approved the Acquisition and there are no conditions precedent. 6. EFFECTIVE DATE OF THE ACQUISITION The effective date of the Acquisition is anticipated to be the date of transfer of the ownership of the Property from the Sellers to the Company which is expected to occur on or about 29 February 2024. 7. OTHER SIGNIFICANT TERMS OF THE AGREEMENTS The Property is sold voetstoots and as it stands, and subject to all title deed conditions contained in the title deed in respect of the Property. The Seller gives no warranties and undertakings and makes no representations of any nature in respect of the Property. 8. CLASSIFICATION OF THE ACQUISITION The Acquisition constitutes a category 2 transaction in terms of the JSE Limited Listings Requirements. Johannesburg 11 January 2024 Sponsor Corporate Adviser PSG Capital
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