Delays in Disposal Approval: Conduit Capital Extends Deadline

In a bid to streamline its operations and focus on strategic initiatives, Conduit Capital Limited has been in negotiations with TMM Holdings Proprietary Limited (“TMM”) for the disposal of its Sale Interest. However, the company has hit a roadblock as the necessary approval from the Prudential Authority is still pending.

Background

Conduit Capital, a key player in the South African financial sector, has been navigating the intricacies of a significant disposal deal. Initially announced on 24 May 2023, the agreement between Conduit Capital, its subsidiary Copper Sunset Trading 186 Proprietary Limited (“Copper Sunset”), and TMM entailed the sale of the Sale Interest to TMM for a cash purchase price of R55 million.

Delays in Regulatory Approval

Despite the parties’ efforts to progress with the transaction, delays in obtaining regulatory approval from the Prudential Authority have persisted. This approval is crucial for ensuring compliance with regulatory requirements, underscoring the importance of a thorough assessment by the Prudential Authority.

Extension of Deadline

In light of the ongoing delays, Conduit Capital and TMM have mutually agreed to extend the deadline for fulfilling the suspensive conditions of the disposal. Initially set for 25 January 2024, the deadline has been extended to 31 March 2024. This extension provides additional time to secure the necessary regulatory approval and finalize the transaction.

A timeline of the key announcements regarding the disposal and subsequent extensions is as follows:

Future Updates

Conduit Capital remains committed to keeping its shareholders informed of any developments regarding the disposal. Shareholders can expect to receive updates through further SENS announcements as the situation progresses.

Conclusion

While delays in obtaining regulatory approval have posed challenges, Conduit Capital continues to work diligently towards finalizing the disposal agreement with TMM. The extension of the deadline provides additional time to navigate the regulatory landscape and secure the necessary approvals, ensuring compliance and facilitating the successful completion of the transaction.