Hyprop Investments Limited (JSE:HYP) entered into an agreement to acquire Balkan Retail NV and SCM Retail Dooel from Hystead Limited for approximately €170 million on January 28, 2022. The estimated purchase consideration will be settled in cash on the effective date, funded from a combination of Hyprop's cash reserves and existing debt facilities. The transaction remains subject to, inter alia, the fulfilment and/or waiver of the following suspensive conditions: the Boards of Directors of Hyprop, Hystead and PDI, and the shareholders of PDI, adopting resolutions approving the conclusion of the transaction agreement; Hyprop and PDI, as the shareholders of Hystead, adopting resolutions approving the conclusion of the transaction agreement, as required in terms of the Hystead shareholders' agreement; Hyprop obtaining shareholder approval for the transaction; Hyprop confirming to Hystead in writing that it has obtained such funding as it may require, on terms and conditions satisfactory to Hyprop to settle the purchase consideration; Hyprop and Hystead obtaining all requisite regulatory and other approvals as may be required in any jurisdiction applicable to Hyprop, Hystead and/or any target group company, including, inter alia, exchange control approval from the South African Reserve Bank; Hystead delivering to Hyprop duly signed consent/s given by the counterparties to any major contracts of the target group regarding the change in shareholding of the target group, to the extent required in terms of such contracts; cancellation of the existing Hystead asset management arrangements; an agreement being concluded by Hyprop, Hystead and PDI clarifying how the provisions of the existing Hystead shareholders agreement will be applied in respect of the arrangements pertaining to Delta City Podgorica and the manner in which Hystead will be wound up; and Hyprop confirming to Hystead in writing that it is satisfied with the outcome of any legal, operational, tax and financial due diligence investigation that it may require to be conducted in respect of the target group, or alternatively that it does not require a due diligence investigation to be conducted. Should any of the suspensive conditions not be fulfilled (or waived) by May 31, 2022, the transaction agreement shall automatically lapse and cease to be of any further force or effect. As of March 25, 2022 the shareholders has passed the resolution. The transaction is anticipated to be implemented by April 30, 2022. The proceeds from the transaction will be used by Hystead to reduce its equity debt. Java Capital (Proprietary) Limited acted as financial advisor to Hyprop.

Hyprop Investments Limited (JSE:HYP) completed the acquisition of Balkan Retail NV and SCM Retail Dooel from Hystead Limited on March 31, 2022. All the conditions have been fulfilled.