Company Announcement - Capital Appreciation (JSE share code to be CTA) will today commence a private placement offering process to qualifying and invited investors, with the intention of listing as a Special Purpose Acquisition Company in the Specialty Finance sector on the Main Board of the securities exchange operated by the JSE Limited. The company expects to list on the 16 October 2015, at an offer price of R1.00 per share.

c has been established by Motty Sacks, Bradley Sacks, Alan Salomon and Michael Pimstein (the “Underwriters”), with investment from the Public Investment Corporation Limited, and the Capital Appreciation Empowerment Trust, a black economic empowerment trust established in conjunction with the Company (collectively the “Founders”).

Capital Appreciation intends to raise at least R500 million, being the minimum capital required to be raised in order to list as a SPAC on the Main Board but will raise significantly more if demand warrants.  The minimum amount of R500 million is fully underwritten by the Underwriters. The Underwriters have also committed to invest not less than R60 million as part of the private placement. The PIC has committed to invest R250 million and CAET has committed to invest R50 million as part of the private placement.  Certain Company related parties have also already committed to invest over R10 million.

African Rainbow Capital, a wholly black-owned investment company, the directors of which are, inter alia, Mr. Patrice Motsepe and Mr. Johan van Zyl, has also committed to invest R50 million. This together with the commitment from PIC, CAET and the minimum commitment of the Underwriters totals more than R420 million.

Upon listing, Capital Appreciation will have no operating business and exist with the raison d’etre of acquiring control of one or more enterprises of scale with good growth potential. The operational, commercial, financial and investment experience of the Capital Appreciation leadership is extensive and multifaceted and includes, inter alia, financial services, insurance, healthcare, metals and mining, telecommunications, media, technology, property, manufacturing and education.  While the Company’s efforts in identifying acquisition targets will not be limited to a particular industry or geographic region within South Africa and/or Africa, the Company expects to focus on acquiring a controlling interest in a business in the services sector.

The Company will seek to acquire a business that will provide a platform for future growth and expansion, either directly in its commercial sector or in related sectors.  In evaluating acquisition alternatives the Company will consider the scalability and growth potential of the target as well as the Company’s ability to add value. Investors’ funds will be held in escrow until the first acquisition is approved by shareholders.  The funds, plus accrued interest, minus permitted expenses will be returned to shareholders if an acquisition is not completed prior to the second anniversary of the listing or such later date at the JSE may permit.

Motty Sacks, Non Executive Chairman said: “We are launching a private placement for shares in Capital Appreciation on Monday 28 September, likely to be the first Special Purpose Acquisition Company to list on the Main Board of the JSE. With the support and investment of the PIC, a reputable and experienced board and management team, together with strong empowerment credentials in the form of African Rainbow Capital and CAET, we see this new stock exchange listing as an exciting development for the South African market”