Standard Bank : Liberty Holdings Ordinary Share Circular (1.2m)

THIS CIRCULAR IS IMPORTANT AND REQUIRESYOUR IMMEDIATE ATTENTION

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. NOT FOR GENERAL RELEASE INTHE UNITED STATES. SEE "IMPORTANT LEGAL NOTICES AND DISCLAIMERS" BELOW FOR FURTHER INFORMATION.

The definitions and interpretations commencing on page 17 apply throughout this Circular, including this cover page, the Annexures, the Notice of General Meeting and the Form of Proxy (yellow) attached to it, the Form of Surrender and Transfer (blue) and the Electronic Participation Form (pink), unless specifically defined otherwise, or the context indicates a contrary intention.

Action required by Liberty Shareholders

This entire Circular is important and should be read with particular attention to the section entitled "Action required by Liberty Shareholders in respect of the Scheme and the Repurchase", which commences on page 9.

If you are in any doubt as to the action you should take, please consult your CSDP, Broker, legal advisor, accountant, banker, other financial intermediary or other professional advisor immediately.

If you have disposed of all your Liberty Shares, then this Circular should be handed to the purchaser of such Liberty Shares or to the Broker, CSDP, banker or other financial intermediary through whom such disposal was effected.

Neither Liberty nor SBG accepts responsibility, or will be held liable, for any action of, or omission by, any CSDP or Broker, legal advisor, accountant, banker, other financial intermediary or other professional advisor including, without limitation, any failure on the part of the CSDP, Broker, legal advisor, accountant, banker, other financial intermediary or other professional advisor of any Beneficial Owner of Liberty Shares, to notify such Beneficial Owner of the transaction set out in this Circular or to take any action on behalf of such Beneficial Owner.

STANDARD BANK GROUP LIMITED	LIBERTY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)	(Incorporated in the Republic of South Africa)
(Registration number: 1969/017128/06)	(Registration number: 1968/002095/06)
JSE and A2X share code: SBK	JSE share code: LBH
JSE preference share code: SBKP/SBPP	JSE preference share code: LBHP
NSX share code: SNB	ISIN: ZAE000127148
ISIN: ZAE000109815	("Liberty")
("SBG")

COMBINED CIRCULAR TO LIBERTY SHAREHOLDERS regarding, among other things:

• a scheme of arrangement in terms of section 114(1)(c) read with section 115 of the Companies Act, proposed by the Liberty Board between Liberty and the Eligible Liberty Shareholders, in terms of which, if implemented, Scheme Participants will be deemed to have disposed of the Scheme Shares to SBG for the Scheme Consideration (for each Scheme Share being: (i) the Share Consideration (0.5 SBG Shares, subject to the Rounding Principle); and

• (ii) the Cash Consideration (an amount of R14.40, subject to any Cash Consideration Adjustments)), on the Scheme Implementation Date;

• subject to the Scheme becoming Operative:
  • the payment of the Special Distribution (being an amount of R11.10 per Liberty Share) to Qualifying Liberty Shareholders, which will be payable simultaneously with the Scheme Consideration on the Scheme Implementation Date; and
  • the specific repurchase by Lexshell 615 (a wholly-owned subsidiary of Liberty) of a maximum of 4,382,756 Liberty Shares from the Liberty Trust for the Repurchase Consideration; and
• the Delisting of the Liberty Shares from the JSE pursuant to the Scheme being implemented;

and incorporating:

• the Independent Expert's Report;
• certain financial information of Liberty and SBG;
• a Notice of General Meeting;
• a Form of Proxy (yellow) for use by Certificated Shareholders and Dematerialised Shareholders with Own-Name Registration only;
• a Form of Surrender and Transfer (blue) for use by Certificated Shareholders only;
• an Electronic Participation Form (pink) for use by Liberty Shareholders who wish to participate electronically in and/or vote at the General Meeting; and
• extracts of sections 114 and 115 of the Companies Act dealing with the approval requirements for fundamental transactions (which include schemes of arrangement) and section 164 of the Companies Act dealing with Dissenting Shareholders' Appraisal Rights.

Financial Advisor to Liberty	Independent Expert to Liberty	Legal Advisor to Liberty

Independent Transaction	Independent Reporting	Legal Advisor to SBG
Sponsor to Liberty	Accountant to Liberty	as to US Law
Transfer Secretaries	Legal Advisor to SBG as to	Joint Transaction Sponsors to
		South African Law	SBG

Financial Advisors to SBG	Independent Reporting Accountants to SBG

Date of issue: Monday, 13 September 2021

This Circular is available in English only. A copy of the Circular will be made available for inspection by Liberty Shareholders during normal business hours at the registered office of Liberty (the details of which are set out in the "Corporate Information and Advisors" section of this Circular), from the date of posting of this Circular on Monday, 13 September 2021, up to and including the Scheme Implementation Date. The Circular will also be made available on the Liberty and SBG websites at: www.libertyholdings.co.za and https://reporting.standardbank.com/, respectively.

CORPORATE INFORMATION AND ADVISORS

Liberty Holdings Limited

Liberty Centre

1 Ameshoff Street Braamfontein Johannesburg South Africa 2001

(PO Box 10499, Johannesburg, Gauteng, 2000)

Registration Number: 1968/002095/06

Date of incorporation: 28 February 1968

Place of incorporation: South Africa

Company Secretary of Liberty

Jill Parratt Liberty Centre

1 Ameshoff Street Braamfontein Johannesburg South Africa 2001

(PO Box 10499, Johannesburg, Gauteng, 2000)

Transfer Secretaries

Computershare Investor Services Proprietary Limited (Registration number: 2004/003647/07)

Rosebank Towers

15 Biermann Avenue Rosebank Johannesburg South Africa

2196

(PO Box 61763, Marshalltown, 2107)

Independent Transaction Sponsor to Liberty

Investec Bank Limited

(Registration number: 1969/004763/06) 100 Grayston Drive

Sandown

Sandton South Africa 2196

(PO Box 785700, Sandton, 2146)

NSX Sponsor to SBG

Simonis Storm Securities (Proprietary) Limited

4 Koch Street

Klein Windhoek

Namibia

(PO Box 3970, Windhoek, Namibia)

Standard Bank Group Limited

9th floor

Standard Bank Centre 5 Simmonds Street Johannesburg South Africa

2001

(PO Box 7725, Johannesburg, Gauteng, 2000)

Registration Number: 1969/017128/06

Date of incorporation: 25 November 1969

Place of incorporation: South Africa

Company Secretary of SBG

Zola Stephen 9th Floor

Standard Bank Centre 5 Simmonds Street Johannesburg South Africa

2001

(PO Box 7725, Johannesburg, Gauteng, 2000)

Independent Expert to Liberty

Ernst & Young Advisory Services Proprietary Limited (Registration number: 2006/018260/07)

102 Rivonia Road Sandton Johannesburg South Africa 2196

(Private Bag X14, Northlands, 2146)

Joint Transaction Sponsors to SBG

The Standard Bank of South Africa Limited (Registration number: 1962/000738/06) 3rd Floor

30 Baker Street Rosebank South Africa 2196

(PO Box 7725, Johannesburg, 2000)

Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities The Place

1 Sandton Drive Sandhurst Johannesburg South Africa 2196

(PO Box 651987, Benmore, 2010)

1

Financial Advisor to Liberty

Goldman Sachs International 13th Floor, The Forum Building 2 Maude St

Sandton Johannesburg South Africa 2196

(PO Box 652937, Benmore, 2010)

Financial Advisors to SBG

The Standard Bank of South Africa Limited (Registration number: 1962/000738/06) 3rd Floor

30 Baker Street Rosebank South Africa 2196

(PO Box 7725, Johannesburg, 2000)

Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities The Place

1 Sandton Drive Sandhurst Johannesburg South Africa 2196

(PO Box 651987, Benmore, 2010)

Independent Reporting Accountants to SBG

KPMG Incorporated

(Registration number: 1991/021543/21) KPMG Crescent

85 Empire Road Parktown Johannesburg South Africa 2193

(Private Bag 9, Parkview, 2122)

PricewaterhouseCoopers Inc (Registration number: 1998/012055/21) 4 Lisbon Lane

Waterfall City

Jukskei View

South Africa 2090

(Private Bag X36, Sunninghill, 2157)

Legal Advisor to Liberty

Webber Wentzel

90 Rivonia Road Sandton Johannesburg South Africa 2196

(PO Box 61771, Marshalltown, 2107)

Legal Advisor to SBG as to South African Law

Bowman Gilfillan Inc. t/a Bowmans (Registration number: 1998/021409/21)

11 Alice Lane Sandton Johannesburg South Africa 2196

(PO Box 785812, Sandton, 2146, South Africa)

Independent Reporting Accountant to Liberty

PricewaterhouseCoopers Inc (Registration number: 1998/012055/21) 4 Lisbon Lane

Waterfall City

Jukskei View

South Africa 2090

(Private Bag X36, Sunninghill, 2157)

Legal Advisor to SBG as to US Law

Davis Polk & Wardwell London LLP

5 Aldermanbury Square

London EC2V 7HR

United Kingdom

2

TABLE OF CONTENTS

	Page No.
CORPORATE INFORMATION AND ADVISORS	1
IMPORTANT LEGAL NOTICES AND DISCLAIMERS	5
ACTION REQUIRED BY LIBERTY SHAREHOLDERS IN RESPECT OF THE SCHEME AND THE REPURCHASE	9
SALIENT DATES AND TIMES	14
DEFINITIONS AND INTERPRETATIONS	17
COMBINED CIRCULAR TO LIBERTY SHAREHOLDERS	26
1.	INTRODUCTION	26
2.	PURPOSE OF THIS CIRCULAR	27
3.	RATIONALE FOR THE SCHEME	28
4.	INFORMATION ABOUT SBG	28
5.	TERMS AND CONDITIONS OF THE SCHEME	29
6.	SPECIAL DISTRIBUTION	35
7.	REPURCHASE	35
8.	TERMINATION EVENTS	37
9.	TAX IMPLICATIONS OF THE SCHEME AND THE SPECIAL DISTRIBUTION	37
10.	SALIENT PROVISIONS OF THE IMPLEMENTATION AGREEMENT	37
11.	AGREEMENTS IN RELATION TO THE SCHEME AND THE EXCLUDED SHAREHOLDERS	38
12.	OPINIONS AND RECOMMENDATIONS	39
13.	ADEQUACY OF CAPITAL	39
14.	GUARANTEE AND FUNDING	39
15.	INFORMATION RELATING TO LIBERTY AND LIBERTY DIRECTORS	40
16.	INFORMATION RELATING TO SBG AND SBG DIRECTORS	43
17.	IRREVOCABLE UNDERTAKINGS AND LETTERS OF SUPPORT	45
18.	DEALINGS BY PROVIDERS OF IRREVOCABLE UNDERTAKINGS	45
19.	FINANCIAL INFORMATION	46
20.	CONTINUATION OF THE BUSINESS OF LIBERTY	48
21.	FOREIGN SHAREHOLDERS AND EXCHANGE CONTROL REGULATIONS	48
22.	RESTRICTED JURISDICTIONS	48
23.	NOTICE OF GENERAL MEETING	48
24.	MATERIAL CHANGES	48
25.	SUSPENSION AND TERMINATION OF THE LIBERTY LISTING	48
26.	ADVISORS' CONSENTS	49
27.	DIRECTORS' RESPONSIBILITY STATEMENTS	49
28.	COSTS	49
29.	DOCUMENTS AVAILABLE FOR INSPECTION	50

3