Africa Opp. Regulatory News (AOF)

15 January 2019

Africa Opportunity Fund Limited ("AOF" or the "Company")

Award of Appeal Panel in the Shoprite matter

The Company's appeal of the arbitrator's award in the Shoprite Holdings Limited ("Shoprite") matter delivered on 27 January 2017 took place in November 2018.

The appeal panel's award was received on 9 January 2019. The appeal panel concluded that the Company did not obtain good title to the 679,145 shares of Shoprite (including the interests of the Company's contingent value right holders in 637,528 Shoprite shares) that it purchased, and it was therefore not entitled to dividends that had accrued. Leaving aside any remedy that the Company may have to recover the original purchase price of these shares and the determination of legal costs to be paid by the Company, the estimated loss (including forfeited accrued dividends) is approximately US $0.55 million, which equates to a reduction in the net asset value ("NAV") per share of approximately $0.007. The most recently released weekly NAV estimate for the shares was $0.686 per share as at close of business on 4 January 2017.

Despite the Board's concerns about the appeal panel's award it has decided the Company must move on. The next NAV to be announced by the Company calculated as of the close of business on 11 January 2017 will include the $0.007 provision.

The Company will issue more announcements in due course if there are further developments in this matter.

Background to the Shoprite arbitration

The Company acquired 679,145 Shoprite's shares on the Lusaka Stock Exchange ("LuSE") in the normal course of business through Zambian brokers between October 2009 and July 2011. Shoprite shares were entrusted to a Zambian law firm, Lewis Nathan Advocates ("Lewis Nathan"), which served as transfer agent for the Shoprite shares listed on LuSE and also as attorney-in-fact for Shoprite to sell those shares. However, the law firm was accused by Shoprite in mid-2011 of selling the shares contrary to restrictions established by Shoprite. Shoprite further contended that it did not receive the proceeds from the trades made by Lewis Nathan. Shoprite has sued Lewis Nathan to obtain the proceeds from those trades. It has also placed dividends due to its shareholders on the Zambian register into an escrow account, pending the outcome of its lawsuit against Lewis Nathan. The Company sued Shoprite in the Western Cape High Court in 2014 for unpaid dividends, agreeing subsequently to the arbitration which has culminated in the appeal award received on 9 January 2019.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For more information please contact:

Africa Opportunity Fund Limited

Francis Daniels Tel: +2711 684 1528

Liberum (Corporate Broker)

Gillian Martin

Christopher Britton Tel: +44 20 3100 2000