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ECSPONENT LIMITED - Additional information on default conversion and correction to conversion dates for Class E preference shares

Release Date: 29/05/2020 15:54
 
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Additional information on default conversion and correction to conversion dates for Class E preference shares

ECSPONENT LIMITED
Incorporated in the Republic of South Africa
Registration number: 1998/013215/06
JSE Code: ECS - ISIN: ZAE000179594
Debt Issuer Code: ECSD
("the Company" or "Ecsponent")

 Class A Preference Shares                   Series Number                 JSE Code            ISIN
 Ecsponent Pref Share A2                     2                             ECSP4               ZAE000202495
 Ecsponent Pref Share A3                     3                             ECSP7               ZAE000210480
 Ecsponent Pref Share A4                     4                             ECSP10              ZAE000217196
 Ecsponent Pref Share A5                     5                             ECSP13              ZAE000244844
 Class B Preference Shares
 Ecsponent Pref Share B2                     2                             ECSP5               ZAE000202503
 Ecsponent Pref Share B3                     3                             ECSP8               ZAE000210498
 Ecsponent Pref Share B4                     4                             ECSP11              ZAE000214441
 Ecsponent Pref Share B5                     5                             ECSP14              ZAE000221362
 Ecsponent Pref Share B6                     6                             ECSP17              ZAE000229878
 Ecsponent Pref Share B7                     7                             ECSP20              ZAE000241717
 Ecsponent Pref Share B8                     8                             ECSP23              ZAE000246112
 Ecsponent Pref Share B9                     9                             ECSB9               ZAE000250049
 Ecsponent Pref Share B10                    10                            ECSB10              ZAE000255675
 Ecsponent Pref Share B11                    11                            ECSB11              ZAE000258844
 Ecsponent Pref Share B12                    12                            ECSB12              ZAE000263257
 Ecsponent Pref Share B13                    13                            ECSB13              ZAE000268371
 Ecsponent Pref Share B14                    14                            ECSB14              ZAE000273157
 Ecsponent Pref Share B15                    15                            ECSB15              ZAE000280939
 Class C Preference Shares
 Ecsponent Pref Share C2                     2                             ECSP6               ZAE000202511
 Ecsponent Pref Share C3                     3                             ECSP9               ZAE000210506
 Ecsponent Pref Share C4                     4                             ECSP12              ZAE000218525
 Ecsponent Pref Share C5                     5                             ECSP15              ZAE000222501
 Ecsponent Pref Share C6                     6                             ECSP18              ZAE000231205
 Ecsponent Pref Share C7                     7                             ECSP21              ZAE000241725
 Ecsponent Pref Share C8                     8                             ECSP24              ZAE000246757
 Class E Preference Shares
 Ecsponent Pref Share E1                     1                             ECSE1               ZAE000250155
 Ecsponent Pref Share E2                     2                             ECSE2               ZAE000254397
 Ecsponent Pref Share E3                     3                             ECSE3               ZAE000258869
 Ecsponent Pref Share E4                     4                             ECSE4               ZAE000263281
 Ecsponent Pref Share E5                     5                             ECSE5               ZAE000268363
 Ecsponent Pref Share E6                     6                             ECSE6               ZAE000273132
 Ecsponent Pref Share E7                     7                             ECSE7               ZAE000280947

ADDITIONAL INFORMATION ON DEFAULT CONVERSION AND CORRECTION TO CONVERSION DATES FOR
CLASS E PREFERENCE SHARES

Security Holders are referred to the announcement released on SENS on 27 May 2020 (“the Announcement”) which
provided details relating to the results of the general meetings of ordinary and preference shareholders in regard to the
proposed amendments to the Company’s Memorandum of Incorporation (“MOI Amendments”).

In terms of the Announcement, Security Holders were advised, inter alia, that the relevant resolutions relating to the
approval of the MOI Amendments had not been carried for the Class A, B, C and E preference shareholders, due to, inter
alia, the conditionality associated with that special resolution in relation to the receipt of notices under Section 164 of the
Companies Act, 2008 and that these classes of preference shares would accordingly be converted to ordinary shares
(“Default Conversion”).

Additional information on Default Conversion
Security Holders are further advised that the conversion rate applicable to Class A, B, C and E preference shares will be
as set out below:

 Class                   ISIN                           Conversion ratio –
                                                       number of ordinary
                                                        shares for 1 (one)
                                                         preference share
 Class A                 All ISIN numbers                      2769.16735
 Class B                 ZAE000202503                          4671.61308
                         ZAE000210498                          4350.37098
                         ZAE000214441                          4203.62737
                         ZAE000221362                          4059.63177
                         ZAE000229878                          3940.91783
                         ZAE000241717                          3777.13658
                         ZAE000246112                          3674.36109
                         ZAE000250049                          3545.20473
                         ZAE000255675                          3396.81231
                         ZAE000258844                          3301.45644
                         ZAE000263257                          3182.74251
                         ZAE000268371                          3080.79143
                         ZAE000273157                          2969.77192
                         ZAE000280939                          2816.70789
 Class C                 All ISIN numbers                      2776.86178
 Class E                 All ISIN numbers                      2771.09096

The above conversion rate is driven by the weighted average closing price of the Company’s ordinary shares, calculated
over the last twenty days of trading on the JSE prior to the first day of default, with the first day of default being 9 March
2020.

In the event that the Default Conversion gives rise to a fraction of an ordinary share becoming due to a preference
shareholder, fractional entitlements will be rounded up or down to the nearest whole number in compliance with the JSE’s
rounding convention, and in accordance with the terms of the Company’s Memorandum of Incorporation.

Correction to timetable applicable to the Default Conversion of Class E preference shares

In accordance with the current terms of the Class A, B, C and E preference shares, these preference shares will convert 3
(three) months after:
•        default by the Company on repayment of the redemption price on the redemption date; or
•        non-payment of 3 (three) consecutive dividends on class A, C and E preference shares of the Company.

Due to the fact that the Class E preference shares do not have any redemption amounts outstanding (as is the case with
the Class A, B and C preference shares), Class E preference shares will only convert 3 months following the non-payment
of 3 (three) consecutive dividends, being 11 August 2020.

Accordingly, the timetable set out in the Announcement relating to the Default Conversion will not apply to the Class E
preference shares and the Class E preference shares will convert in accordance with the below timetable:

                                                                                                                       2020
 Last day to trade prior to the Default Conversion becoming effective                                     Tuesday, 4 August

 Suspension in trading in the current Class E preference shares                                         Wednesday, 5 August

 Commencement of trading in the New Ordinary Shares                                                     Wednesday, 5 August

 Record date for the Default Conversion (“Record Date”)                                                    Friday, 7 August
 Accounts of current dematerialised Class E preference shareholders with their CSDPs or                  Tuesday, 11 August
 Brokers will be updated, as applicable, with the New Ordinary Shares

 Share certificates relative to the New Ordinary Shares issued pursuant to the Default                   Tuesday, 11 August
 Conversion to relevant certificated Class E preference shareholders, posted by registered
 post, at their risk
 Current Class E preference shares removed from the JSE List at commencement of trade                  Wednesday, 12 August

Note to timetable:
1. Class E preference shareholders may not dematerialise or rematerialise their preference shares between Tuesday,
   4 August 2020 and Friday, 7 August 2020, both dates inclusive.

For more information about this announcement or the Ecsponent group, email
investor.relations@ecsponent.com or visit www.ecsponentlimited.com/investor-relations.

29 May 2020
Pretoria

Sponsor to Ecsponent
Questco Corporate Advisory (Pty) Ltd

Date: 29-05-2020 03:54:00
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