CONSOLIDATED INFRASTRUCTURE GROUP LIMITED
(in business rescue)
(Incorporated in the Republic of South Africa)
(Registration number 2007/004935/06)
JSE share code: CIL ISIN: ZAE000153888
(“CIG” or the “Company”)
UPDATE ON ACQUISITION OF WEARNE MULDERSDRIFT QUARRY BUSINESS, PROPERTY AND MINING RIGHT
Shareholders are referred to the announcement released on Thursday, 5 December 2019 (“Acquisition Announcement”) wherein shareholders were advised that Drift Supersand Proprietary Limited, a wholly-owned subsidiary of CIG (the “Purchaser”), entered into various agreements with Wearne Aggregates Proprietary Limited, a wholly-owned subsidiary of WG Wearne Limited (the “Seller”) to acquire:
- the Wearne Muldersdrift Business, comprising the aggregates business conducted by the Seller (the “Sale of Business Agreement”);
- the letting enterprise conducted by the Seller, including the property (being portions Re/226, 227, 266, 267, 285, 286 and 287 of the Farm Rietfontein 189-IQ; and Portions 57, 58, 171, 182
and 185 of the Farm Rietfontein 180-IQ (the “Property”) on which the letting enterprise is conducted (“Sale of Properties Agreement”); and
- the mining right granted to the Seller in terms of sections 22 and 23 of the mineral and Petroleum Resources Development Act, 28 of 2002 in respect of the Property (“Sale of Mining Right Agreement”) for an aggregate consideration of R50 000 000, payable in cash in accordance with the terms of the respective transactions.
Shareholders are advised that the conditions precedent for the Sale of Business Agreement were fulfilled and the transaction completed on 14 January 2020.
However, the conditions precedent in respect of the Sale of Properties Agreement (as detailed in the Acquisition Announcement) have not been fulfilled and as a result, the suspensive conditions of the Sale of Mining Right Agreement (as detailed in the Acquisition Announcement) have also not been fulfilled.
As result, both the Sale of Properties Agreement and the Sale of Mining Right Agreement have thus by mutual agreement lapsed and the transactions will not be implemented by CIG.
2 March 2021