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RCL Foods – shareholding purchase

RCL Foods announces that it has entered into a subscription agreement with, inter alia, HMH, a private company incorporated under the laws of Uganda, whereby RCL Foods shall subscribe for 33,5 percent of the total issued share capital of HMH for USD4.66 million in cash (“the Acquisition”).

HMH is a poultry producer operating a feed mill, broiler farms and processing plant. It is currently owned by the Hudani and Manji families, who have extensive interests in East Africa in food processing, distribution, construction, telecoms, real estate and hospitality. This is an exciting opportunity to enter the East African region with an established reputable partner, and the new venture will create one of the largest processors and marketers of chicken in both Uganda and East Africa.

The Acquisition is not subject to JSE Ltd. Listings Requirements due to its size and is only subject to a number of non-material conditions precedent.