Labat Africa Limited (JSE:LAB) agreed to acquire a 80% stake in Lima Romeo Air Proprietary Limited from A de Jager, S Booth and P Gillies for ZAR 10 million on March 1, 2022. Consideration will be paid in cash and a deposit of 50% of the purchase consideration has been paid into trust pending the conclusion of the suspensive conditions below. Pursuant to the transaction, A de Jager, S Booth and P Gillies will transfer 75%, 12% and 3% stake respectively and upon completion, Booth and Gallow will hold 10% each and Labat will hold 80%, making it a subsidiary.

The consideration of ZAR 10 million for the acquisition will be funded through the Labat's cash resources. The net asset value of Lima Romeo, for the nine month period ending as at November 30, 2021 was ZAR 6.72 million. The acquisition is subject to the fulfilment of parties meeting all closing conditions of the sale of share agreement by March 15, 2022, the agreement/s becoming unconditional, which include, inter alia, proof of transfer of the land to Sweetwater from the deeds office, provision of the latest financial information and employment agreements being entered into with key management, the board providing a certified extract of the board resolution approving the acquisition and any regulatory approvals to the extent required.

Shareholder approval is not required for the transaction.