KAP: KAP INDUSTRIAL HOLDINGS LIMITED - Acquisition By KAP Of Safripol Holdings Proprietary Limited
KAP: KAP INDUSTRIAL HOLDINGS LIMITED - Acquisition By KAP Of Safripol Holdings Proprietary Limited
Acquisition By KAP Of Safripol Holdings Proprietary Limited
KAP INDUSTRIAL HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration Number 1978/000181/06)
Share code: KAP
ISIN: ZAE000171963
('KAP')
ACQUISITION BY KAP OF SAFRIPOL HOLDINGS PROPRIETARY LIMITED
1.   Introduction
     Shareholders are referred to the SENS announcement published on 10 August 2016, in terms of
     which a nominated wholly-owned subsidiary of KAP would acquire the entire issued ordinary share
     capital of Safripol Holdings Proprietary Limited ('Safripol'), subject to certain conditions
     precedent (the 'Transaction').
     Shareholders are hereby advised that all of the conditions precedent in relation to the Transaction
     have been fulfilled and accordingly the effective date for the Transaction is 1 January 2017.
2.   Rationale for the Transaction
     KAP is invested in a number of industry leading industrial businesses managed within two
     segments: Diversified Logistics and Diversified Industrial. The Diversified Industrial segment includes
     chemical operations comprising of its Hosaf and Woodchem businesses. It is one of KAP´s strategic
     objectives to grow by investing in industry leading industrial assets that are complementary to its
     existing operations. The Safripol business operates in the chemical sector and produces
     complementary products to those of Hosaf, with a similar business model. The Transaction
     represents an ideal fit for KAP in terms of certain key investment criteria, being Safripol´s market
     leadership, high barriers to entry, strong cash generative qualities and competence of
     management with sufficient depth and continuity.
3.   Funding of the Transaction
     The entire issued ordinary share capital in Safripol was acquired for a cash consideration of R4.1
     billion on a debt free, cash free basis, which was discharged on 3 January 2017. In order to
     maintain a healthy capital structure to facilitate future growth for KAP, the Transaction was funded
     by a combination of equity and debt in the following manner:
         -     R1.5 billion equity raised through a Claw-back Offer, concluded in December 2016;
         -     R1.374 billion raised through a combination of private and public bond issuances with 3
               and 5 year tenors, together with a mix of fixed and floating interest rates; and
         -     R1.226 billion raised through a combination of term debt and revolving credit facilities with
               3 year tenors, together with a mix of fixed and floating interest rates.
4.   Appreciation
     The board of directors record their appreciation to shareholders and institutions for their continued
     support and participation in the aforesaid funding.

10 January 2017
Stellenbosch
Sponsor to KAP
PSG Capital Proprietary Limited
Date: 10/01/2017 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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2017-01-10 14:00:00 Source: JSE News Service (SENS)

KAP Industrial Holdings Ltd. published this content on 10 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 10 January 2017 12:08:03 UTC.

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