Tarsus Regulatory News (TRS)

5 December 2016

THIS ANNOUNCEMENT, INCLUDING THE APPENDIX AND THE INFORMATION IN IT, IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.

Tarsus Group plc

Conditional Acquisition of Connect

and

Placing of New Ordinary Shares to raise £24.1 million

Tarsus Group plc ("Tarsus" or the "Group"), the international business-to-business media group, announces that it has conditionally agreed to acquire 80.1 per cent of Connect Meetings, LLC (trading as "Connect") for a cash consideration of up to approximately $57.0 million (the "Acquisition"), payable by way of initial consideration of approximately $44.0 million plus up to $1.0 million for working capital and up to $12.0 million payable over the next two years subject to certain conditions.

Tarsus also announces today that it intends to place up to 10,252,610 new ordinary shares of 5 pence each in the capital of Tarsus (the "Placing Shares") at a price of 235.0 pence per Placing Share (the "Placing Price"), representing approximately 9.9 per cent. of Tarsus' existing issued share capital (the "Placing"), raising gross proceeds of £24.1 million. The proceeds of the Placing will be used to part-fund the Acquisition, with the remaining approximate $27.4 million of the maximum Acquisition consideration being funded through drawdown under the Group's amended bank facilities, which have been increased to £111.0 million and the maturity date extended to 2020. The Placing is not conditional upon completion of the Acquisition.

Highlights:

· Acquisition of 80.1 per cent. of Connect, a market leading US business travel and meetings event organiser for a cash consideration of up to approximately $57.0 million.

· Strategic rationale in line with Tarsus' Quickening the Pace strategy:

o Increases the Group's exposure to US economy;

o Addresses markets in transition;

o Strong financial track record; and

o Organic growth opportunities, including event replications.

· Connect has delivered a strong track record of growth and for the financial year ending 31 December 2016 the directors of Tarsus expect Connect to generate revenue of $17.2 million and EBITDA of $6.3 million.

· Management of Connect will continue to manage the business after the Acquisition.

· Net proceeds of the Placing of approximately £23.4 million to be used to part-fund the Acquisition.

· The directors of Tarsus believe that together the Placing and Acquisition will be earnings accretive in the year ending 31 December 2017 and thereafter.

Commenting on the Placing, Douglas Emslie, Group Managing Director, said:

"Following the recent acquisition of Intex in China, which brought two world class exhibitions into the Group, Music China and CES Asia, we are delighted to be acquiring Connect in the US. The US and China are two of the world's largest exhibition markets and both are a key area of focus for Tarsus. These acquisitions tick all of the boxes of our Quickening the Pace strategy.

"Connect is a strong brand, led by an entrepreneurial team with a track record of delivering strong growth. We are pleased to have acquired Connect as companies of this size and quality are increasingly difficult to find. There is a great opportunity to quicken that growth further by expansion and replication within the US and other selected territories and to launch into new verticals. I would like to warmly welcome the Connect team on board."

This announcement contains inside information.

For further information contact:

Notes to Editors

Tarsus Group plc. (LSE:TRS) is an international business-to-business media group with interests in exhibitions, publishing and online media. The Group operates globally in the US and Americas, China, Southeast Asia, the Middle East and North Africa, Turkey and Europe, in key verticals including aviation, medical, labels and packaging, discount clothing (Off-Price), travel, housewares and automotive.

Tarsus runs more than 100 events and websites and its flagship brands include the Labelexpo Global Series in Europe, the Americas and Asia and the Dubai Airshow.

The Group operates across a worldwide network of offices in Dublin, London, Jakarta, Milwaukee, Atlanta, Boca Raton (Florida), Dubai, Shanghai and Istanbul.

For more information visit www.tarsus.com.

The information contained within this announcement is deemed by Tarsus to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. By the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

This announcement should be read in its entirety. In particular, you should read and understand the information provided in the "Important Notices" section below.

The Appendix to this announcement (which forms part of this announcement) sets out the terms and conditions of the Placing. Persons who have chosen to participate in the Placing, by making an oral or written offer to acquire Placing Shares, will be deemed to have read and understood this announcement in its entirety (including the Appendix) and to be making such offer on the terms and subject to the conditions herein, and to be providing the representations, warranties, agreements, acknowledgements and undertakings contained in the Appendix.

IMPORTANT NOTICES

This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the US Securities Act 1933, as amended, and will be offered only in "offshore transactions" as defined in and pursuant to regulations under the US Securities Act 1933, as amended. No public offering of securities is being made in the United States. No money, securities or other consideration from any person inside the United States is being solicited and, if sent in response to the information contained in this announcement, will not be accepted.

This announcement may contain "forward-looking statements" with respect to certain of Tarsus' plans and its current goals and expectations relating to its future financial condition, performance, strategic initiatives, objectives and results. Forward-looking statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "seek", "may", "could", "outlook" or other words of similar meaning. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the control of Tarsus, including amongst other things, United Kingdom domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of governmental and regulatory authorities, the effect of competition, inflation, deflation, the timing effect and other uncertainties of future acquisitions or combinations within relevant industries, the effect of tax and other legislation and other regulations in the jurisdictions in which Tarsus and its respective affiliates operate, the effect of volatility in the equity, capital and credit markets on Tarsus' profitability and ability to access capital and credit, a decline in Tarsus' credit ratings, the effect of operational risks and the loss of key personnel. As a result, the actual future financial condition, performance and results of Tarsus may differ materially from the plans, goals and expectations set out in any forward-looking statements. Any forward-looking statements made in this announcement by or on behalf of Tarsus speak only as at the date on which they are made. Except as required by applicable law or regulation, Tarsus expressly disclaims any obligation or undertaking to publish any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in Tarsus' expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

Investec Bank plc ("Investec") is authorised by the Prudential Regulatory Authority and regulated in the United Kingdom by the Prudential Regulation Authority and the Financial Conduct Authority (the "FCA") and is acting exclusively for Tarsus and no one else in connection with the Placing and will not be responsible to anyone (including any Placees) other than Tarsus for providing the protections afforded to its clients or for providing advice in relation to the Placing or any other matters referred to in this announcement.

No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Investec or by any of its respective affiliates or agents as to, or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

This announcement contains certain financial measures that are not defined or recognised under IFRS, including EBITDA (being earnings before interest, tax, depreciation, amortisation). Information regarding these measures are sometimes used by investors to evaluate the efficiency of a company's operation and its ability to employ its earnings toward repayment of debt, capital expenditures and working capital requirements. There are no generally accepted principles governing the calculation of these measures and the criteria upon which these measures are based can vary from company to company. These measures, by themselves, do not provide a sufficient basis to compare Tarsus' performance with that of other companies and should not be considered in isolation or as a substitute for operating profit or any other measure as an indicator of operating performance, or as an alternative to cash generated from operating activities as a measure of liquidity.

No statement in this announcement is intended to be a profit forecast and no statement in this announcement should be interpreted to mean that earnings per share of Tarsus for the current or future years would necessarily match or exceed the historical published earnings per share of Tarsus.

Neither the content of Tarsus' website (or any other website) nor the content of any website accessible from hyperlinks on Tarsus' website (or any other website) is incorporated into or forms part of this announcement.

Proposed Acquisition of Connect

and

Placing of New Ordinary Shares to raise £24.1 million

Introduction

Tarsus, the international business-to-business media group, announces that it has conditionally agreed to acquire 80.1 per cent of Connect Meetings, LLC (trading as Connect) for a cash consideration of up to approximately $57.0 million, payable by way of initial consideration of approximately $44.0 million plus up to $1.0 million for working capital and up to $12.0 million payable over the next two years subject to certain conditions.

Tarsus also announces today that it intends to place up to 10,252,610 Placing Shares at a Placing Price of 235.0 pence per Placing Share, representing approximately 9.9 per cent. of Tarsus' existing issued share capital, raising gross proceeds of approximately £24.1 million. The proceeds of the Placing will be used to part-fund the Acquisition, with the remaining approximate $27.4 million of the maximum Acquisition consideration being funded through drawdown under the Group's amended bank facilities, which have been increased to £111.0 million and the maturity date extended to 2020. The Placing is not conditional upon completion of the Acquisition.

Information on Connect

Overview

Connect is a leading US business travel and meetings event company, serving the business travel and meetings sector through a combination of national, regional and vertically focused events which are supplemented by an integrated media offering and additional marketing solutions.

Connect has developed and manages a series of events across the United States held throughout the year that bring together meeting professionals and planners with suppliers to the business travel and meetings sector. The meetings are arranged on an invitation-only, appointment-based format, which deliver efficiencies for both suppliers and planners.

Business travel & meetings market

Connect's core market is the US business travel and meetings market. Global business travel spend was a record-breaking $1.2 trillion in 2015, with the US market ranked second in business travel spend at $290 billion. Tarsus believes that there has been a surge in construction of hotel rooms and event space over the last 10 years to take advantage of the expanding business travel market.

Events

In 2016, Connect held 13 events in the US across the following product sets:

National event - Connect Marketplace

Connect's flagship event, Connect Marketplace, is an annual event targeting industry leading planners, suppliers and experts focused on the Association, Corporate, Sports, and Specialty verticals and takes place over a three day period in August each year. The 2016 Connect Marketplace event attracted in excess of 1,000 planners and 2,000 suppliers and sponsors.

Vertically focused events: (four events in 2016)

Connect currently has four events in the following industry verticals: Faith, Diversity, Incentive and a second Association event held in Washington DC. These events are held throughout the year across the United States.

Regionally focused events: (eight events in 2016)

Connect launched its first regional event in 2015 and subsequently ran eight events in 2016. These events focus on professionals who are focused on doing business in specific geographical regions across the US.

The Connect ecosystem is supported by an integrated media and marketing offering. Connect also produces print, digital and social media content that drives year-round brand engagement. Original content is also produced via web properties, print magazines and as show guides. Connect also offers a full suite of marketing solutions, including newsletters, webinars, lead generation, display, email and social and video marketing to drive targeted marketing programmes.

Financial Information

Connect has a strong track record of revenue and profit growth. For the year ending 31 December 2016, Tarsus expects Connect to deliver turnover of approximately $17.2 million and EBITDA of approximately $6.3 million. As at 30 September 2016, Connect had unaudited gross assets of approximately $3.5 million.

Background to and reasons for the Acquisition and Placing

Tarsus continues to progress its "Quickening the Pace" strategy, which is focused on accelerating the pace of financial returns to shareholders through organic growth and strategic acquisitions to develop a market-leading portfolio focused on high growth economies.

A key pillar of the Group's strategy is to increase the Group's exposure to the world's largest exhibition markets, namely the US and Asia. Tarsus announced in November 2016 the acquisition of a 50 per cent. interest in Shanghai Intex Exhibition Co. Limited ("Intex"), which runs a portfolio of events in Shanghai, including Music China (Instruments), CES Asia (Consumer Electronics) and Hortiflorexpo IPM (Flowers). The acquisition of Intex marks an important development for the Group, increasing its business in China, the world's third largest exhibition market, and developing a new partnership with the Chinese government body, the China Council for the Promotion of International Trade.

The directors of Tarsus consider that the acquisition of Connect presents a highly attractive opportunity to:

· increase the Group's exposure to the US economy and event markets;

· provide the Group with significant near-term growth opportunities through:

o the expansion of Connect Marketplace; and

o replication of the Connect verticals across the US;

· accelerate Connect's growth through leveraging Tarsus':

o infrastructure and sales platform; and

o existing sector verticals in the business travel sector through its existing businesses;

· retain a highly experienced senior management team, which in turn will limit integration risk; and

· further progress shareholder returns in line with the Group's "Quickening the Pace" strategy.

The directors of Tarsus believe that together the Placing and Acquisition will be earnings accretive in the year ending 31 December 2017 and thereafter. This earnings accretion is also expected to enhance the Group's future dividend capacity.

In order to execute the growth opportunities in the US, additional resources will be added to the Group's US management and finance areas. However, Tarsus' directors believe Connect is capable of being integrated into the Group with minimal disruption.

Taking into account the proposed Acquisition and the Group's extended banking facilities, the directors of Tarsus believe the Group's proforma gearing is likely to be approximately 2.2 times net debt:EBITDA in December 2016 following completion of the Acquisition. Tarsus' board has, therefore, determined that it is appropriate for Tarsus to raise new equity capital by way of a placing of up to approximately 10.3 million new Placing Shares, representing approximately 9.9 per cent. of Tarsus' issued share capital, to maintain the strength and flexibility of Tarsus' balance sheet, so as to maintain the Group's gearing within its medium term target of 1.5x-2.0x net debt:EBITDA. Tarsus' directors believe such financial flexibility will enable management to continue to pursue other acquisition opportunities.

Principal terms of the Acquisition

Tarsus has conditionally acquired from Connect HoldCo Inc. ("HoldCo") 80.1 per cent. of the membership interests in Connect for:

(i) an initial cash consideration of $44.055 million, plus up to $1.0 million for working capital, payable in cash on Completion; and

(ii) additional cash payments calculated by reference to Connect's EBITDA in 2017 and 2018, capped at $12.0 million.

The remaining 19.1 per cent. of the membership interests in Connect are subject to put and call option arrangements. The call option is exercisable by Tarsus at any time between 1 January 2022 and 31 December 2024 and the put option can be exercised by HoldCo on the occurrence of certain events (including a change of control of Tarsus). Both put and call options entitle HoldCo to a cash payment calculated by reference to Connect's EBIDTA for the trailing 12 months preceding the exercise of the option and the put option is capped at $23.0 million. 

The Acquisition will be funded as to:

· approximately $29.6 million from the net proceeds of the Placing; and

· approximately up to $27.4 million from the Group's amended bank facilities, which have been extended to £111.0 million due in 2020. 

The Acquisition is conditional on, inter alia, completion of the Placing. The directors of Tarsus expect the Acquisition to complete on or around 7 December 2016. The acquisition documentation contains warranties and indemnities which are customary for a transaction of this nature.

Connect's current CEO will remain in place, with an intention that he stay with the business for a period of at least five years. He will report to Douglas Emslie, Tarsus Group Managing Director, and will retain a 19.9 per cent. interest in Connect. Connect's established senior management team will also be retained as part of the Acquisition.

Details of the Proposed Placing

Under the terms of the Placing, Tarsus intends to place up to 10,252,610 Placing Shares, representing approximately 9.9 per cent. of the current issued ordinary share capital of Tarsus, with existing shareholders and new institutional investors at the Placing Price. Members of the public are not entitled to participate in the Placing. Tarsus expects to raise approximately £24.1 million (gross) (approximately £23.4 million (net)) by way of the Placing. The Placing is not being underwritten.

The Placing Price represents a discount of approximately 5.2 per cent. to the closing mid-market price of 248.0 pence per ordinary share of 5 pence each in the capital of Tarsus (the "Ordinary Shares") on 2 December 2016, being the latest practicable date prior to the publication of this announcement.

Investec, as agent for and on behalf of Tarsus, has agreed to use its reasonable endeavours to procure Placees for the Placing Shares at the Placing Price.

The Placing Shares will rank pari passu in all respects with each other and with the Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid on the Ordinary Shares after Admission, excluding the interim dividend of 2.7 pence per Ordinary Share as announced by Tarsus on 27 July 2016, but including any final dividend declared by the board of Tarsus in respect of the year ending 31 December 2016. The issue of the Placing Shares is to be effected by way of a cashbox placing and will be made on a non-pre-emptive basis.

Applications have been made to the FCA for admission of the Placing Shares to the premium listing segment of the Official List of the UK Listing Authority (the "Official List") and to London Stock Exchange plc ("London Stock Exchange") for admission to trading on its main market for listed securities (together, "Admission"). It is expected that Admission will become effective on or around 7 December 2016 and that dealings in the Placing Shares will commence at that time.

The Placing is not conditional upon completion of the Acquisition. In the unlikely event that the Placing were to proceed but completion of the Acquisition does not occur, the directors of Tarsus will assess the options available to Tarsus, including the return of the net proceeds of the Placing to shareholders. The timing of any return of capital would take into account Tarsus' sources of funding and any such return of capital may be implemented in more than one tranche.

The Placing is conditional upon, amongst other things, Admission becoming effective and the Placing Agreement between Tarsus and Investec becoming unconditional and not being terminated, in accordance with its terms.

A further announcement will be made later today once the Placing has been completed.

Investec is acting as sole bookrunner and broker in respect of the Placing.

The Appendix to this announcement (which forms part of the announcement) sets out the terms and conditions of the Placing and expressions used in this announcement shall have the meanings set out in the Definitions section of the Appendix.

Placing Statistics

APPENDIX: TERMS AND CONDITIONS OF THE PLACING

IMPORTANT INFORMATION ON THE PLACING FOR INVITED PLACEES ONLY.

THIS ANNOUNCEMENT, INCLUDING THE APPENDIX (TOGETHER THE "ANNOUNCEMENT") AND THE INFORMATION IN IT, IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT HAS NOT BEEN EXAMINED OR APPROVED BY THE FCA OR THE LONDON STOCK EXCHANGE, NOR IS IT INTENDED THAT IT WILL BE SO EXAMINED OR APPROVED.

MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE PLACING. THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND IS DIRECTED ONLY AT: (A) PERSONS IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA WHO ARE QUALIFIED INVESTORS AS DEFINED IN SECTION 86(7) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000, AS AMENDED ("QUALIFIED INVESTORS"), BEING PERSONS FALLING WITHIN THE MEANING OF ARTICLE 2(1)(E) OF DIRECTIVE 2003/71/EC AS AMENDED (INCLUDING ANY RELEVANT IMPLEMENTING DIRECTIVE MEASURE IN ANY MEMBER STATE) (THE "PROSPECTUS DIRECTIVE"); AND (B) IN THE UNITED KINGDOM, QUALIFIED INVESTORS WHO ARE PERSONS WHO (I) HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) ('INVESTMENT PROFESSIONALS') OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "ORDER"); (II) ARE PERSONS FALLING WITHIN ARTICLE 49(2)(A) TO (D) ('HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS, ETC') OF THE ORDER; OR (III) ARE PERSONS TO WHOM IT MAY OTHERWISE BE LAWFULLY COMMUNICATED (ALL SUCH PERSONS IN (A) AND (B) TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). THIS ANNOUNCEMENT AND THE INFORMATION IN IT MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT AND THE INFORMATION IN IT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS. THIS ANNOUNCEMENT DOES NOT ITSELF CONSTITUTE AN OFFER FOR SALE OR SUBSCRIPTION OF ANY SECURITIES IN THE COMPANY.

THIS ANNOUNCEMENT IS NOT AN OFFER OF SECURITIES FOR SALE INTO THE UNITED STATES. THE SECURITIES REFERRED TO HEREIN HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT AND WILL BE OFFERED ONLY IN "OFFSHORE TRANSACTIONS" AS DEFINED IN AND PURSUANT TO REGULATIONS UNDER THE US SECURITIES ACT. NO PUBLIC OFFERING OF SECURITIES IS BEING MADE IN THE UNITED STATES. NO MONEY, SECURITIES OR OTHER CONSIDERATION FROM ANY PERSON INSIDE THE UNITED STATES IS BEING SOLICITED AND, IF SENT IN RESPONSE TO THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT, WILL NOT BE ACCEPTED.

EACH PLACEE SHOULD CONSULT WITH ITS OWN ADVISERS AS TO LEGAL, TAX, BUSINESS AND RELATED ASPECTS OF AN INVESTMENT IN PLACING SHARES. THE DISTRIBUTION OF THIS ANNOUNCEMENT, ANY PART OF IT OR ANY INFORMATION CONTAINED IN IT MAY BE RESTRICTED BY LAW IN CERTAIN JURISDICTIONS, AND ANY PERSON INTO WHOSE POSSESSION THIS ANNOUNCEMENT, ANY PART OF IT OR ANY INFORMATION CONTAINED IN IT COMES SHOULD INFORM THEMSELVES ABOUT, AND OBSERVE, SUCH RESTRICTIONS.

In this Appendix, unless the context requires, "Placee" means a Relevant Person (including individuals, funds or others) who has been invited to, and who chooses to, participate in the Placing and by whom or on whose behalf a commitment to subscribe for Placing Shares has been given.

This Announcement does not constitute an offer to sell or issue, or the solicitation of an offer to buy or subscribe for, Placing Shares in any jurisdiction in which such offer or solicitation is or may be unlawful.

In particular, the Placing Shares referred to in this Announcement have not been and will not be registered under the US Securities Act or any securities regulatory authority of any state or other jurisdiction of the United States and will be offered and sold only outside of the United States in "offshore transactions" as defined in and pursuant to Regulation S under the US Securities Act. No public offer of securities of the Company is being made in the United Kingdom, the United States or elsewhere.

The relevant clearances have not been, nor will they be, obtained from the securities commission of any province or territory of Canada; no prospectus has been lodged with, or registered by, the Australian Securities and Investments Commission or the Japanese Ministry of Finance; the relevant clearances have not been, and will not be, obtained from the South African Reserve Bank or any other applicable body in the Republic of South Africa in relation to the Placing Shares; and the Placing Shares have not been, nor will they be, registered under or offered in compliance with the securities laws of any state, province or territory of Australia, Canada, Japan or the Republic of South Africa. Accordingly, the Placing Shares may not (unless an exemption under the relevant securities laws is applicable) be offered, sold, resold or delivered, directly or indirectly, in or into Australia, Canada, Japan or the Republic of South Africa or any other jurisdiction outside the United Kingdom.

Persons (including, without limitation, nominees and trustees) who have a contractual or other legal obligation to forward a copy of this Announcement should seek appropriate advice before taking any action.

Details of the Placing

Investec has today entered into an agreement with the Company (the "Placing Agreement") under which, subject to certain conditions, Investec, as agent for and on behalf of the Company, has agreed to use its reasonable endeavours to procure Placees for the Placing Shares at the Placing Price.

The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive dividends and other distributions declared or made after the date of issue of the Placing Shares.

The Placing Agreement is conditional upon, amongst other things:

· admission occurring by 8:00am on 7 December 2016 (or such later time and date as Investec and the Company may agree, not being later than 8:00am on 16 December 2016); and

· the obligations of Investec not having been terminated pursuant to the terms of the Placing Agreement.

The Placing Agreement contains certain undertakings, warranties and indemnities given by the Company for the benefit of Investec. Investec has absolute discretion as to whether or not to bring an action against the Company for breach of these undertakings, warranties and indemnities.

Investec may terminate the Placing Agreement in certain circumstances, details of which are set out below.

This Appendix gives details of the terms and conditions of, and the mechanics of participation in, the Placing. No commissions will be paid to Placees or by Placees in respect of any Placing Shares.

Applications for listing and admission to trading

Applications have been made to the FCA for admission of the Placing Shares to the Official List of the UK Listing Authority and to the London Stock Exchange for admission to trading of the Placing Shares on its main market for listed securities.

It is expected that Admission will become effective at 8.00am on 7 December 2016 and that dealings in the Placing Shares will commence at that time.

Participation in the Placing

1. Investec is acting as sole bookrunner and as agent for the Company. Investec is authorised in the United Kingdom by the Prudential Regulation Authority ("PRA") and regulated by the FCA and the PRA, is acting exclusively for the Company and no one else in connection with the matters referred to in this Announcement and will not be responsible to anyone other than the Company for providing the protections afforded to the customers of Investec or for providing advice in relation to the matters described in this Announcement. Participation in the Placing is only available to persons who may lawfully be, and are, invited to participate in it by Investec. Investec and its affiliates are each entitled to participate in the Placing as principal.

2. The price per Placing Share is fixed at 235.0 pence and is payable to Investec by all Placees. No fee or commission will be paid to Placees in respect of any Placing Shares.

3. Each Placee's allocation will be determined by Investec following consultation with the Company and confirmed orally to such Placee by Investec, as agent of the Company and a contract note will be dispatched as soon as possible thereafter. That oral confirmation will constitute an irrevocable, legally binding commitment upon that person (who at that point will become a Placee) in favour of the Company and Investec to subscribe for the number of Placing Shares allocated to it at the Placing Price on the terms and conditions set out in this Appendix and in accordance with the Company's articles of association. Except with Investec's consent, such commitment will not be capable of variation or revocation after the time at which it is submitted.

4. Each Placee's allocation and commitment will be evidenced by a contract note issued to such Placee by Investec. The terms of this Appendix will be deemed incorporated in that contract note.

5. Each Placee will also have an immediate, separate, irrevocable and binding obligation, owed to Investec (as agent of the Company), to pay it (or as it may direct) in cleared funds an amount equal to the product of the Placing Price and the number of Placing Shares such Placee has agreed to subscribe for and the Company has agreed to allot and issue to that Placee.

6. Each Placee will be deemed to have read and understood this Announcement in its entirety, to be participating in the Placing upon the terms and subject to the conditions contained in this Announcement and to be providing the representations, warranties, agreements, acknowledgements and undertakings, in each case as contained in this Announcement.

7. Irrespective of the time at which a Placee's allocation pursuant to the Placing is confirmed, settlement for all Placing Shares to be subscribed for pursuant to the Placing will be required to be made at the same time, on the basis explained below under "Registration and settlement".

8. All obligations under the Placing will be subject to fulfilment of the conditions referred to below under "Conditions of the Placing" and to the Placing not being terminated on the basis referred to below under "Termination of the Placing Agreement".

9. By participating in the Placing, each Placee will agree that its rights and obligations in respect of the Placing will terminate only in the circumstances described below and will not be capable of rescission or termination by the Placee.

10. To the fullest extent permitted by law and applicable FCA rules, neither (i) Investec, (ii) any of its directors, officers, employees or consultants nor (iii) to the extent not contained with (i) or (ii), any person connected with Investec as defined in FSMA ((ii) and (iii) being together "affiliates" and individually an "affiliate" of Investec), shall have any liability (including, to the extent permissible by law, any fiduciary duties) to Placees or to any person other than the Company in respect of the Placing. In particular, neither Investec nor any of its affiliates shall have any liability in respect of Investec's conduct of the Placing or of such alternative method of effecting the Placing as Investec and the Company may agree.

Conditions of the Placing

Investec's obligations under the Placing Agreement in respect of the Placing Shares are conditional on, amongst other things:

(a) the representations and warranties contained in the Placing Agreement being true, accurate and not misleading in any material respect on the date of the Placing Agreement and at each other Significant Date as if they had been given or made on such dates by reference to the facts and circumstances subsisting at such dates;

(b) the Company complying with its obligations under the Placing Agreement in so far as they are required to be performed prior to Admission;

(c) in the bona fide opinion of Investec, in its absolute discretion, there having been no Material Adverse Effect at any time prior to Admission (whether or not foreseeable at the date of the Placing Agreement); and

(d) Admission taking place by 8.00 a.m. on 7 December 2016 (or such later date as Investec may otherwise determine, being no later than 8.00 a.m. on 16 December 2016).

If (i) any condition contained in the Placing Agreement is not fulfilled or waived by Investec by the respective time or date specified (or such later time or date as the Company and Investec may agree), (ii) any such condition becomes incapable of being satisfied or (iii) the Placing Agreement is terminated in the circumstances specified below, the Placing will not proceed and the Placees' rights and obligations hereunder in relation to the Placing Shares shall cease and terminate at such time and each Placee agrees that no claim can be made by the Placee in respect thereof.

Investec may, at its discretion and upon such terms as it thinks fit, waive compliance by the Company with the whole or any part of any of the Company's obligations in relation to the conditions in the Placing Agreement, save that condition (d) above relating to Admission may not be waived. Any such extension or waiver will not affect the Placees' commitments as set out in this Announcement.

Neither Investec nor the Company shall have any liability to any Placee (or to any other person, whether acting on behalf of a Placee or otherwise) in respect of any decision they may make as to whether or not to waive or to extend the time and/or the date for the satisfaction of any condition to the Placing, nor for any decision they may make as to the satisfaction of any condition or in respect of the Placing generally, and by participating in the Placing each Placee agrees that any such decision is within the absolute discretion of Investec. 

Termination of the Placing Agreement

Investec is entitled, at any time prior to Admission, to terminate the Placing Agreement in the event that:

(a) in its bona fide opinion there has been a breach of, or there has taken place or arisen an event rendering untrue or incorrect in any respect, any of the warranties under the Placing Agreement and/or a breach of the undertaking that the Company has given to Investec in the Placing Agreement not to do or omit to do anything which could or might cause any warranty given by it to become untrue, inaccurate or misleading at any time before Admission (by reference to the facts and circumstances existing at that time); or

(b) it comes to the notice of Investec that any statement contained in this Announcement, or any other document or announcement issued or published by or on behalf of the Company in connection with the Placing (together the "Placing Documents"), is or has become untrue, incorrect or misleading in any material respect, or any matter has arisen which would, if the Placing were made at that time, constitute a material omission from the Placing Documents, or any of them; or

(c) there has occurred in its bona fide opinion (i) any outbreak or escalation of hostilities, act of terrorism or other calamity or crisis or (ii) any material adverse change (or development involving a prospective material adverse change) in national or international political, financial or economic conditions, or currency exchange rates; or

(d) trading in any securities of the Company or trading generally on any stock exchange or in any over the counter market is disrupted, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices have been required, by any exchange or by any governmental authority, or a material disruption has occurred in commercial banking or securities settlement or clearance services in the United States, Asia or in Europe, in the in the bona fide opinion of Investec; or

 (e) a banking moratorium has been declared by the authorities of any of the United Kingdom, the United States, the State of New York or any other member state of the European Economic Area.

Upon such termination, the parties to the Placing Agreement shall be released and discharged from their respective obligations under or pursuant to the Placing Agreement (except for any liability arising before or in relation to such termination), subject to certain exceptions.

By participating in the Placing, Placees agree that the exercise by Investec of any right of termination or other discretion under the Placing Agreement shall be within the absolute discretion of Investec and that it need not make any reference to Placees and that it shall have no liability to Placees whatsoever in connection with any such exercise or failure so to exercise.

No prospectus

No offering document or prospectus has been or will be submitted to be approved by the FCA in relation to the Placing or the Placing Shares and Placees' commitments will be made solely on the basis of the information contained in this Announcement (including this Appendix) and the Exchange Information (as defined below).

Each Placee, by accepting a participation in the Placing, agrees that the content of this Announcement is exclusively the responsibility of the Company and confirms that it has neither received nor relied on any other information (other than the Exchange Information), representation, warranty or statement made by or on behalf of the Company or Investec or any other person and neither Investec, the Company nor any other person will be liable for any Placee's decision to participate in the Placing based on any other information, representation, warranty or statement which the Placees may have obtained or received. Each Placee acknowledges and agrees that it has relied on its own investigation of the business, financial or other position of the Company in accepting a participation in the Placing. Nothing in this paragraph shall exclude the liability of any person for fraudulent misrepresentation.

Registration and settlement

Settlement of transactions in the Placing Shares (ISIN: JE00B3DG9318) following Admission will take place within the system administered by Euroclear UK & Ireland Limited ("CREST"), subject to certain exceptions. Investec reserves the right to require settlement for, and delivery of, the Placing Shares (or a portion thereof) to Placees in certificated form if, in Investec's opinion, delivery or settlement is not possible or practicable within the CREST system within the timetable set out in this Announcement or would not be consistent with the regulatory requirements in any Placee's jurisdiction.

Following close of the Placing, each Placee allocated Placing Shares in the Placing will be sent a contract note in accordance with the standing arrangements in place with Investec, stating the number of Placing Shares allocated to it at the Placing Price, the aggregate amount owed by such Placee to Investec and settlement instructions. Each Placee agrees that it will do all things necessary to ensure that delivery and payment is completed in accordance with either the standing CREST or certificated settlement instructions that it has in place with Investec.

The Company will deliver the Placing Shares to a CREST account operated by Investec as agent for the Company and Investec will enter its delivery (DEL) instruction into the CREST system. Investec will hold any Placing Shares delivered to this account as nominee for the Placees. The input to CREST by a Placee of a matching or acceptance instruction will then allow delivery of the relevant Placing Shares to that Placee against payment.

Settlement through CREST will be on a T+2 basis unless otherwise notified by Investec and it is expected that settlement will take place on 7 December 2016 in accordance with the instructions set out in the contract note.

Interest is chargeable daily on payments not received from Placees on the due date in accordance with the arrangements set out above at the rate of two percentage points above LIBOR as determined by Investec.

Each Placee agrees that, if it does not comply with these obligations, Investec may sell any or all of the Placing Shares allocated to that Placee on such Placee's behalf and retain from the proceeds, for Investec's account and benefit, an amount equal to the aggregate amount owed by the Placee plus any interest due. The relevant Placee will, however, remain liable for any shortfall below the aggregate amount owed by it and may be required to bear any stamp duty or stamp duty reserve tax (together with any interest or penalties) which may arise upon the sale of such Placing Shares on such Placee's behalf.

If Placing Shares are to be delivered to a custodian or settlement agent, Placees should ensure that the contract note is copied and delivered immediately to the relevant person within that organisation.

Insofar as Placing Shares are registered in a Placee's name or that of its nominee or in the name of any person for whom a Placee is contracting as agent or that of a nominee for such person, such Placing Shares should, subject as provided below, be so registered free from any liability to UK stamp duty or stamp duty reserve tax.

Placees will not be entitled to receive any fee or commission in connection with the Placing.

Representations and warranties

By participating in the Placing each Placee (and any person acting on such Placee's behalf) acknowledges, undertakes, represents, warrants and agrees (as the case may be) that:

1. it has read this Announcement (including the Appendix) in its entirety and its acquisition of the Placing Shares is subject to the terms and conditions of the Placing as referred to and included in this Announcement;

2. no offering document or prospectus has been prepared in connection with the Placing and that it has not received and will not receive a prospectus or other offering document in connection with the Placing;

3. the Ordinary Shares are listed on the Official List of the UK Listing Authority and traded on the main market of the London Stock Exchange, and the Company is therefore required to publish certain business and financial information in accordance with the rules and practices of the London Stock Exchange and/or the FCA (collectively "Exchange Information"), which includes a description of the nature of the Company's business and the Company's most recent balance sheet and profit and loss account and that the Placee is able to obtain or access such information or comparable information concerning any other publicly traded company without undue difficulty;

4. (i) it has made its own assessment of the Placing Shares and has relied on its own investigation of the business, financial or other position of the Company in accepting a participation in the Placing; (ii) none of Investec, the Company, any of their respective affiliates or any person acting on behalf of any of them has provided, or will provide, it with any material regarding the Placing Shares in addition to this Announcement; and (iii) it has not requested Investec, the Company or any of their respective affiliates or any person acting on behalf of any of them to provide it with any such information;

5. the content of this Announcement is exclusively the responsibility of the Company and that none of Investec, its affiliates or any person acting on its or their behalf has or shall have any liability for any information, representation or statement contained in this Announcement or any information previously or concurrently published by or on behalf of the Company and will not be liable for any Placee's decision to participate in the Placing based on any information, representation or statement contained in this Announcement or elsewhere;

6. none of Investec, the Company or any of their affiliates or any person acting on its or their behalf has made any representations to it, express or implied, with respect to the accuracy, completeness or adequacy of any Exchange Information and each of them expressly disclaims any liability in respect thereof (save that nothing in this paragraph shall exclude the liability of any person for fraudulent misrepresentation);

7. the only information on which it has relied in committing itself to subscribe for the Placing Shares is contained in this Announcement and any Exchange Information and that it has not received or relied on any information given, or any representations, warranties or statements made, by Investec, the Company, any of their affiliates or any person acting on behalf of any of them and none of Investec, the Company, any of their affiliates or any person acting on behalf of any of them will be liable for its decision to accept an invitation to participate in the Placing based on any information, representation, warranty or statement other than that contained in this Announcement and any Exchange Information;

8. it has neither received nor relied on any confidential price sensitive information concerning the Company in accepting this invitation to participate in the Placing;

9. it has the funds available to pay for the Placing Shares for which it has agreed to subscribe and acknowledges, agrees and undertakes that it will pay the total subscription amount in accordance with the terms and conditions of this Announcement on the due time and date set out herein, failing which the relevant Placing Shares may be placed with other placees or sold at such price as Investec determines;

10. it: (i) is entitled to subscribe for the Placing Shares under the laws of all relevant jurisdictions; (ii) has fully observed such laws; (iii) has the requisite capacity and authority and is entitled to enter into and to perform its obligations as a subscriber for Placing Shares and will honour such obligations; and (iv) has obtained all necessary consents and authorities (including, without limitation, in the case of any person on whose behalf it is acting, all necessary consents and authorities to agree to the terms set out or referred to in this Announcement) to enable it to enter into the transactions contemplated hereby and to perform its obligations in relation thereto and, in particular, if it is a pension fund or investment company it is aware of and acknowledges it is required to comply with all applicable laws and regulations with respect to its subscription for Placing Shares;

11. it is not, and any person who it is acting on behalf of is not, and at the time the Placing Shares are subscribed will not be, a resident of, or with an address in, or subject to the laws of, Australia, Canada, Japan or the Republic of South Africa, and it acknowledges and agrees that the Placing Shares have not been and will not be registered or otherwise qualified under the securities legislation of Australia, Canada, Japan or the Republic of South Africa and may not be offered, sold, or acquired, directly or indirectly, within those jurisdictions;

12. (i) the Placing Shares have not been and will not be registered under the US Securities Act or with any state or other jurisdiction of the United States, nor approved or disapproved by the US Securities and Exchange Commission, any state securities commission in the United States or any other United States regulatory authority, (ii) it will not offer, sell or deliver, directly or indirectly, any Placing Shares in or into the United States other than pursuant to an effective registration under the US Securities Act or in a transaction exempt from, or not subject to, the registration requirements thereunder and in compliance with any applicable securities laws of any state or other jurisdiction of the United States and (iii) it is outside of the United States, not acting on a non-discretionary basis for the account or benefit of a person located within the United States at the time the undertaking to acquire the Placing Shares is given and is otherwise acquiring the Placing Shares in an "offshore transaction" meeting the requirements of Regulation S under the US Securities Act;

13. it is a person of a kind described in (i) Article 19(5) (Investment Professionals) and/or 49(2) (High net worth companies etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended, and/or an authorised person as defined in section 31 of FSMA; and (ii) section 86(7) of FSMA ("Qualified Investor"), being a person falling within Article 2.1(e) the Prospectus Directive. For such purposes, it undertakes that it will acquire, hold, manage and (if applicable) dispose of any Placing Shares that are allocated to it for the purposes of its business only;

14. it has only communicated or caused to be communicated, and will only communicate or cause to be communicated, any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) relating to the Placing Shares in circumstances in which section 21(1) of FSMA does not require approval of the communication by an authorised person and it acknowledges and agrees that this Announcement has not been approved by Investec in its capacity as an authorised person under section 21 of FSMA and it may not therefore be subject to the controls which would apply if it was made or approved as financial promotion by an authorised person;

15. it is aware of and acknowledges that it is required to comply with all applicable provisions of FSMA with respect to anything done by it in relation to the Placing Shares in, from or otherwise involving, the United Kingdom;

16. it will not make any offer to the public of the Placing Shares and has not offered or sold and will not offer or sell any Placing Shares to persons in the United Kingdom or elsewhere in the European Economic Area prior to Admission, except to persons whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of their business or otherwise in circumstances which have not resulted in and which will not result in an offer to the public in the United Kingdom for the purposes of section 85(1) of FSMA or an offer to the public in any other member state of the European Economic Area within the meaning of the Prospectus Directive;

17. it has not been engaged to subscribe for the Placing Shares on behalf of any other person who is not a Qualified Investor unless the terms on which it is engaged enable it to make decisions concerning the acceptance of offers of transferable securities on the client's behalf without reference to the client, as described in section 86(2) of FSMA;

18. it is acting as principal only in respect of the Placing or, if it is acting for any other person, (i) it is duly authorised to do so and has full power to make the acknowledgments, representations and agreements herein on behalf of each such person and (ii) it is and will remain liable to the Company and/or Investec for the performance of all its obligations as a Placee in respect of the Placing (regardless of the fact that it is acting for another person);

19. no action has been or will be taken by either the Company, Investec or any of their affiliates or any person acting on their behalf that would, or is intended to, permit a public offer of the Placing Shares in any country or jurisdiction;

20. it is aware of and acknowledges that it is required to comply with its obligations in connection with money laundering under the Proceeds of Crime Act 2002, the Terrorism Act 2000, the Terrorism Act 2006 and the Money Laundering Regulations 2007 (the "Regulations") and, if making payment on behalf of a third party, that satisfactory evidence has been obtained and recorded by it to verify the identity of the third party as required by the Regulations;

21. it is aware of the obligations regarding insider dealing in the Criminal Justice Act 1993, the Market Abuse Regulation (596/2014) and the Proceeds of Crime Act 2002 and confirms that it has and will continue to comply with those obligations;

22. the allocation, allotment, issue and delivery to it, or the person specified by it for registration as a holder of Placing Shares, will not give rise to a stamp duty or stamp duty reserve tax liability under any of sections 67, 70, 93 or 96 of the Finance Act 1986 (depositary receipts and clearance services) and that no instrument under which it subscribes for Placing Shares (whether as principal, agent or nominee) would be subject to stamp duty or the increased rates referred to in those sections and that it, or the person specified by it for registration as a holder of Placing Shares, is not participating in the Placing as nominee or agent for any person or persons to whom the allocation, allotment, issue or delivery of Placing Shares would give rise to such a liability;

23. it, or the person specified by it for registration as a holder of the Placing Shares, will be liable for any stamp duty and all other stamp, issue, securities, transfer, registration, documentary or other duties or taxes (including any interest, fines or penalties relating thereto), if any, payable on acquisition of any of the Placing Shares or the agreement to subscribe for the Placing Shares and acknowledges and agrees that none of Investec, the Company, any of their respective affiliates or any person acting on behalf of them will be responsible for any liability to stamp duty or stamp duty reserve tax resulting from a failure to observe this requirement. Each Placee and any person acting on behalf of such Placee agrees to participate in the Placing, and agrees to indemnify the Company and Investec on an after-tax basis in respect of the same, on the basis that the Placing Shares will be allotted to the CREST stock account of Investec who will hold them as nominee on behalf of such Placee until settlement in accordance with its standing settlement instructions; 

24. none of Investec, any of its affiliates or any person acting on behalf of any of them has or shall have any liability for any information, representation or statement contained in this Announcement or for any information previously published by or on behalf of the Company or any other written or oral information made available to or publicly available or filed information or any representation, warranty or undertaking relating to the Company, and will not be liable for its decision to participate in the Placing based on any information, representation, warranty or statement contained in this Announcement or elsewhere, provided that nothing in this paragraph shall exclude any liability of any person for fraud;

25. none of Investec, any of its affiliates or any person acting on behalf of any of them is making any recommendations to it, advising it regarding the suitability of any transactions it may enter into in connection with the Placing and that its participation in the Placing is on the basis that it is not and will not be a client of Investec and that Investec has no duties or responsibilities to it for providing the protections afforded to its clients or customers under the rules of the FCA, for providing advice in relation to the Placing, in respect of any representations, warranties, undertakings or indemnities contained in the Placing Agreement or for the exercise or performance of any of its rights and obligations thereunder, including any rights to waive or vary any conditions or exercise any termination right;

26. in order to ensure compliance with the Money Laundering Regulations 2007, Investec (for itself and as agent on behalf of the Company) or the Company's registrars may, in their absolute discretion, require verification of its identity. Pending the provision to Investec or the Company's registrars, as applicable, of evidence of identity, definitive certificates in respect of the Placing Shares may be retained at Investec's absolute discretion or, where appropriate, delivery of the Placing Shares to it in uncertificated form may be delayed at Investec's or the Company's registrars', as the case may be, absolute discretion. If within a reasonable time after a request for verification of identity Investec (for itself and as agent on behalf of the Company) or the Company's registrars have not received evidence satisfactory to them, Investec and/or the Company may, at its absolute discretion, terminate its commitment in respect of the Placing, in which event the monies payable on acceptance of allotment will, if already paid, be returned without interest to the account of the drawee's bank from which they were originally debited;

27. Investec and its affiliates, acting as an investor for its or their own account(s), may bid or subscribe for and/or purchase Placing Shares and, in that capacity, may retain, purchase, offer to sell or otherwise deal for its or their own account(s) in the Placing Shares, any other securities of the Company or other related investments in connection with the Placing or otherwise. Accordingly, references in this Announcement to the Placing Shares being offered, subscribed, acquired or otherwise dealt with should be read as including any offer to, or subscription, acquisition or dealing by, Investec and/or any of their respective affiliates acting as an investor for its or their own account(s). Neither Investec nor the Company intend to disclose the extent of any such investment or transaction otherwise than in accordance with any legal or regulatory obligation to do so;

28. these terms and conditions and any agreements entered into by it pursuant to these terms and conditions shall be governed by and construed in accordance with the laws of England and Wales and it submits (on behalf of itself and on behalf of any person on whose behalf it is acting) to the exclusive jurisdiction of the English courts as regards any claim, dispute or matter arising out of any such contract, except that enforcement proceedings in respect of the obligation to make payment for the Placing Shares (together with any interest chargeable thereon) may be taken by the Company or Investec in any jurisdiction in which the relevant Placee is incorporated or in which any of its securities have a quotation on a recognised stock exchange;

29. the Company, Investec and their respective affiliates and others will rely upon the truth and accuracy of the foregoing agreements, acknowledgements, representations, warranties and undertakings which are given to Investec, on its own behalf and on behalf of the Company, and are irrevocable;

30. it irrevocably appoints any duly authorised officer of Investec as its agent for the purpose of executing and delivering to the Company and/or its registrars any documents on its behalf necessary to enable it to be registered as the holder of any of the Placing Shares for which it agrees to subscribe or purchase upon the terms of this Announcement;

31. it will indemnify on an after tax basis and hold the Company, Investec and their respective affiliates harmless from any and all costs, claims, liabilities and expenses (including legal fees and expenses) arising out of or in connection with any breach of the representations, warranties, undertakings, agreements and acknowledgements in this Appendix and further agrees that the provisions of this Appendix shall survive after completion of the Placing;

32. (i) it has knowledge and experience in financial, business and international investment matters and is required to evaluate the merits and risks of subscribing for the Placing Shares; (ii) it is experienced in investing in securities of this nature and is aware that it may be required to bear, and is able to bear, the economic risk of, and is able to sustain a complete loss in connection with, the Placing; and (iii) it has relied upon its own examination and due diligence of the Company and its associates, taken as a whole, and the terms of the Placing, including the merits and risks involved; and

33. its commitment to subscribe for Placing Shares on the terms set out herein and in the contract note will continue notwithstanding any amendment that may in future be made to the terms of the Placing and that it will have no right to be consulted or require that their consent be obtained with respect to the Company's conduct of the Placing.

The representations, warranties, acknowledgements and undertakings contained in this Appendix are given to Investec for itself and on behalf of the Company and are irrevocable.

The agreement to settle a Placee's subscription (and/or the subscription of a person for whom such Placee is contracting as agent) free of stamp duty and stamp duty reserve tax depends on the settlement relating only to a subscription by it and/or such person direct from the Company for the Placing Shares in question. Such agreement assumes that the Placing Shares are not being subscribed for in connection with arrangements to issue depositary receipts or to transfer the Placing Shares into a clearance service. If there are any such arrangements, or the settlement relates to any other subsequent dealing in the Placing Shares, UK stamp duty or stamp duty reserve tax may be payable, for which neither the Company nor Investec will be responsible, and the Placee to whom (or on behalf of whom, or in respect of the person for whom it is participating in the Placing as an agent or nominee) the allocation, allotment, issue or delivery of Placing Shares has given rise to such UK stamp duty or stamp duty reserve tax undertakes to pay such UK stamp duty or stamp duty reserve tax forthwith and to indemnify on an after-tax basis and to hold harmless the Company and Investec in the event that any of the Company and/or Investec has incurred any such liability to UK stamp duty or stamp duty reserve tax. If this is the case, each Placee should seek its own advice and notify Investec accordingly.

In addition, Placees should note that they will be liable for any stamp duty and all other stamp, issue, securities, transfer, registration, documentary or other duties or taxes (including any interest, fines or penalties relating thereto) payable outside the United Kingdom by them or any other person on the subscription by them of any Placing Shares or the agreement by them to subscribe for any Placing Shares.

Each Placee, and any person acting on behalf of the Placee, acknowledges and agrees that Investec does not owe any fiduciary or other duties to any Placee in respect of any representations, warranties, undertakings or indemnities in the Placing Agreement.

Each Placee and any person acting on behalf of each Placee, acknowledges and agrees that Investec or any of its affiliates may, at their absolute discretion, agree to become a Placee in respect of some or all of the Placing Shares.

When a Placee or person acting on behalf of the Placee is dealing with Investec, any money held in an account with Investec on behalf of the Placee and/or any person acting on behalf of the Placee will not be treated as client money within the meaning of the rules and regulations of the FCA made under FSMA. The Placee acknowledges and agrees that the money will not be subject to the protections conferred by the client money rules; as a consequence, this money will not be segregated from Investec's money in accordance with the client money rules and will be used by Investec in the course of its own business; and the Placee will rank only as a general creditor of Investec.

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.

Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this Announcement.

All times and dates in this Announcement may be subject to amendment.

DEFINITIONS

In addition to the terms previously defined, the following definitions apply throughout this Announcement unless the context otherwise requires: