SacOil Holdings Limited (JSE:SCL) signed an agreement to acquire Belton Park Trading 134 Proprietary Limited for ZAR 220 million on October 2, 2017. SacOil will acquire assets and operations of Belton Park and will also assume the liabilities of Belton Park in this transaction. Pursuant to the terms of agreement, SacOil will pay initial cash consideration of ZAR 100 million and a conditional consideration of ZAR 120 million. The conditional consideration is contingent upon the assets achieving performance related targets for the financial year ending February 28, 2018 of EBITDA between ZAR 27 million and ZAR 45 million per annum. The conditional consideration is payable in cash and stock. SacOil will pay ZAR 90 million in cash and ZAR 30 million, through the issuance of SacOil ordinary shares. The contingent consideration is payable on May 31, 2018. The cash component of consideration and contingent consideration will be satisfied from the proceeds of right issue of SacOil. Post-completion, Belton Park will be operated by a newly incorporated subsidiary of SacOil. For financial year ended February 28, 2017, Belton Park reported turnover in excess of ZAR 2 billion, unaudited consolidated earnings before interest, tax, depreciation and amortisation of ZAR 27 million, profit after tax of ZAR 5 million and net asset value of ZAR 7 million. Post-completion, the senior management team of Belton Park will continue to manage the business under SacOil ownership and all other employees will be retained. The senior management team committed to serve for a minimum period of two years. The transaction is subject to approval from competition authorities and successful implementation of right offer to its shareholder by December 31, 2017. The transaction is further subject to shareholder approval of both Belton Park and SacOil, if applicable. SacOil must have applied for a whole sale license to the Department of Energy. SacOil has executed independent contractor service agreements with each of the owners of Belton Park on terms and conditions and in form and substance acceptable to SacOil. The transaction is further subject to written approval for the implementation of the acquisition has been duly obtained from SacOil's lender, if legally required. Belton Park's principals shall have been released from the all personal guarantees and suretyships provided by the principal. The completion is subject to precedent conditions and is anticipated to occur by no later than December 31, 2017. Ben Romney and Chris Judd of Buchanan acted as financial PR advisor for SacOil while Gem Capital (Pty) Ltd acted as corporate advisor for Belton Park.