Saab Grintek Defence (Pty) Ltd (“SGD”) exercised its call option on the 25% plus 1 share (“Subject Shares”) the Group held in SGD in line with agreements signed in 2015 when the Group acquired the investment in SGD. The Subject Shares were held, prior to their disposal, by Bowwood and Main no. 180 (Pty) Ltd (“Bowwood”), a 60% subsidiary of AEEI.

The disposal of the Subject Shares is a category 1 transaction in terms of the JSE Listings Requirements, requiring the issuance of a circular (“Circular”) to AEEI shareholders calling for a general meeting of shareholders to obtain approval for such disposal.

Due to the legally binding agreements entered into in 2015 not making provision for shareholder approval by AEEI, Bowwood had no option but to dispose of the Subject Shares as per the aforementioned agreements, notwithstanding that AEEI itself needs to obtain shareholder approval. A failure or refusal by Bowwood to do so would have exposed Bowwood to a substantial damages claim for breach of contract. The disposal of the Subject Shares has thus taken place. This process took place and was concluded on 3 December 2020.

AEEI however, in terms of good corporate governance, will comply as far as possible, with the JSE Listings Requirements despite Bowwood disposing of the Subject shares prior to AEEI obtaining approval from its shareholders and in this regard is preparing the Circular.

On 6 September 2020, AYO withdrew its funds from the Cadiz Life Investment Enterprise Development Fund (“Cadiz”). The funds will be utilised by AYO as part of its entrepreneurship development expenditure into small-to- medium-sized enterprises in the information, communication, and technology sector for B-BBEE compliance.

AYO withdrew R200m from the Bank of China on 8 October 2020, and R100m on 28 October 2020. The withdrawn funds were invested with Ninety One Fund Managers SA (RF) (Pty) Ltd (“Ninety One”). The funds with Ninety One will be utilised to invest in the money market. At the time of issue of the financial results, AYO had invested funds of R520m with Ninety One.