Insimbi in a bid to be more significant player in the recycling sector

Insimbi and its wholly-owned subsidiaries, Amalgamated Metals Recycling (Pty) Ltd (“AMR”), Amalgamated Metals Recycling SA (Pty) Ltd (“AMR SA”), Amalgamated Metals Recycling West Rand (Pty) Ltd (“AMR WR”) and Spring Lights 1135 (Pty) Ltd (“Spring Lights”), entered into binding agreements in which the Company intends to repurchase a number of listed ordinary issued Insimbi shares (“Shares”) and dispose of certain business assets owned by its subsidiaries (“Transaction”).


Insimbi acquired the shares in AMR, AMR SA and AMR WR in December 2016 with the intention of creating a larger, more diversified company which would become a more significant player in the recycling sector.

Due to the underperformance of the AMR Booysens Business and the AMR WR Business, Insimbi believes that the disposal of the business assets in terms of the AMR Booysens Disposal and AMR West Disposal (collectively hereinafter referred to as the “Disposals”) is in the best interest of the Company.

The Crimson Clover Repurchase and Casterly Rock Repurchase (collectively hereinafter referred to as the “Repurchases”) will facilitate the Disposals, as a portion of the repurchase considerations to be paid by Insimbi in terms of the Repurchases, will be used to settle the purchase considerations due in terms of the Disposals.

The Repurchases are considered an appropriate allocation of capital as the impact of the Repurchases and the cancellation and delisting of such repurchased Shares (“Repurchase Shares”) are expected to enhance the net asset value per Insimbi Share. The reduction in the number of issued Shares will also have the effect of increasing the holdings of the Company’s existing shareholders.

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