Clientele amends Emerald Life acquisition funding, no initial preference shares

Clientele Limited (JSE:CLI) announced an amendment to the funding structure of its acquisition of Emerald Life, initially announced on November 1, 2024. The company will no longer issue Initial Preference Shares to Investec Bank Limited to fund the acquisition. Instead, the funding will now be a combination of free cash and Clientele Life Assurance Company Limited issuing preference shares to AEL Investment Holdings Proprietary Limited, a wholly owned subsidiary of Investec for ZAR570,000,000. Clientele Life will use proceeds to advance a loan of ZAR570,000,000 to Clientele, complying with section 8FA of the Income Tax Act, and Clientele will guarantee the obligations of Clientele Life under the Clientèle Life Preference Shares. Shareholders will be asked to approve amending the Company's memorandum of incorporation to remove references to the Initial Preference Shares and approve the Financial Assistance, relating to the new funding structure of the Emerald Life Acquisition. A circular to shareholders is being prepared.