Barloworld to redeem all preference shares

Barloworld Limited has initiated the process to redeem all 375,000 of its issued 6% cumulative preference shares. This redemption is contingent on specific conditions precedent, including the passing of a special resolution by Barloworld ordinary shareholders to amend the company's Memorandum of Incorporation (MOI). This resolution is expected to pass after the squeeze-out of ordinary shares and their delisting from the JSE and A2X, anticipated by January 27, 2026.

Upon redemption, assumed to be on March 2, 2026, holders will receive a gross payment of ZAR2.557 per preference share, comprising a capital payment of ZAR2.50 and a dividend payment of ZAR0.057. Dividends will accrue at an 8% per annum rate from December 31, 2025, until the redemption date. The net amount payable to holders subject to a 20% dividends withholding tax is ZAR2.5456 per preference share.

The redemption will be funded through internally generated cash flows and is expected to result in a decrease of R1 million in shareholders' equity and cash. The JSE has granted a waiver for a circular to preference shareholders. The last day to trade preference shares on the JSE and A2X is February 24, 2026, with listing suspended from February 25, 2026.