Intended disposal of minority shareholding

Masawara PLC

("Masawara" or the "Company")

Intended disposal of a minority shareholding in an investment

Masawara PLC (AIM:MASA), the AIM quoted investment company, announces that it has conditionally entered into a strategic and equity relationship with Sanlam Emerging Markets (Proprietary) Limited ("SEM"), in terms of which SEM will acquire a minority 40% interest in Masawara Investments Mauritius Limited ("MIM") for a consideration of US$11.6 million (hereinafter referred to as the "Transaction"). SEM is an indirect subsidiary of Sanlam Limited, a financial services and insurance holding company listed on the Johannesburg Stock Exchange.

Implementation of the Transaction is subject to fulfilment of various conditions precedent, including the obtaining of relevant regulatory approvals. Upon implementation of the Transaction, MIM will hold the Masawara Group's interests in the short-term and life insurance and reinsurance businesses in Zimbabwe, which comprise Zimnat Lion Insurance, Zimnat Life Assurance and Grand Reinsurance ("the Insurance Businesses"). The Transaction valuation is at a premium to the combined net asset values of the Insurance Businesses.

In addition to acquiring an equity interest in MIM, SEM, through its affiliates, will also offer technical support services to the Company's insurance businesses in Zimbabwe. MIM and SEM will also explore new opportunities in other countries in Africa.

Further announcements will be made upon fulfilment of the conditions precedent and implementation of the Transaction. Should the Transaction be successfully concluded, the proceeds will be applied in line with Masawara's investment strategy.

About Masawara

Masawara is a proactive investment company focussed on identifying growth opportunities that deliver cash returns, both in Zimbabwe and the southern African region. The Company continues to appraise investment opportunities, and is intent on unlocking intrinsic value from the existing investment portfolio.

Contact details

Masawara Zimbabwe (Private) Limited (as Investment Advisor to Masawara PLC)

Pride Masamba / Oliver Lutz: +263 4 751 805