Mr Price Group Limited (JSE:MRP) entered into transaction agreements to acquire 70% of shares of Blue Falcon 188 Trading (Pty) Ltd from RMB Ventures Six (Pty) Ltd and current management of the Studio 88 Group for ZAR 3.6 billion on April 12, 2022. The inclusion of the Studio 88 Group would increase Mr Price?s annual revenue to over Rand 28 billion and would prospectively become the group?s second largest of nine trading divisions. Mr Price?s store footprint would increase to more than 2 400 stores and the group would employ over 25 000 people. The Founder of the Studio 88 Group, Laurence Wernars, will continue running the Business, maintaining his strong and trusted management team. The seven senior management team members who are shareholders will remain in their current roles and as shareholders, thereby benefiting from the further growth in the Business. The Purchase Consideration is payable at the time of implementation of the Transaction. Mr Price will acquire 100% of RMB Ventures shareholding in Blue Falcon and management will dispose of an effective 50% of their shareholding, enabling Mr Price to acquire the Sale Shares (?Initial Acquisition?). Management?s retained shareholding will be acquired over a four-year period post implementation of the Transaction, based on the same Historical Multiple as the Initial Acquisition. The Transaction is subject to the fulfillment of both regulatory and commercial suspensive conditions, as are usual for such transactions, by no later than 31 October 2022. These conditions include competition authority approval in South Africa and other African territories. The value of the net assets to be acquired as at 30 September 2021 amounts to Rand 1.6 billion. For the financial year ended 30 September 2021, the Studio 88 Group generated revenue of Rand 5.6 billion and EBITDA of Rand 1.1 billion. The Transaction is subject to the fulfillment of both regulatory and commercial suspensive conditions, as are usual for such transactions, by no later than 31 October 2022. These conditions include competition authority approval in South Africa and other African territories. As on July 19, 2022, the transaction has been approved by the Competition Tribunal of South Africa. Following the implementation of the proposed transaction, Mr Price will solely control Studio 88. Investec Bank Limited acted as Financial Advisor, JSE Equity Sponsor and Corporate Broker, Bowmans Inc acted as legal advisor to the Mr Price. As of September 30, 2022, the transaction has now become unconditional and will close on October 3, 2022.

Mr Price Group Limited (JSE:MRP) completed the acquisition of 70% of shares of Blue Falcon 188 Trading (Pty) Ltd from RMB Ventures Six (Pty) Ltd on October 3, 2022.