WOWOW - WOOLWORTHS HOLDINGS LIMITED - Declaration information in relation to a renounceable rights offer of R10 billion and cautionary announcement [JSE Securities Exchange - SENS]
Declaration information in relation to a renounceable rights offer of R10 billion and cautionary announcement

(Incorporated in the Republic of South Africa)
Registration number 1929/001986/06
Share code: WHL ISIN: ZAE000063863
("WHL" or the "Company" or the "Group")




   Shareholders of WHL ("Shareholders") are referred to the announcements released
   on the Stock Exchange News Service ("SENS") of the JSE Limited ("JSE") on Wednesday,
   9 April 2014 and Friday, 16 May 2014, relating to the acquisition by WHL of the entire issued
   share capital of David Jones Limited ("David Jones") ("the Acquisition").

   Shareholders are further referred to the announcement released on SENS on Tuesday, 17
   June 2014 relating to the approval by the requisite majority of Shareholders of all the
   resolutions proposed at a general meeting of Shareholders held on Tuesday, 17 June 2014
   relating to the Acquisition.

   For purposes of the Acquisition, an unsecured syndicated facility agreement was entered
   into by WHL and Woolworths Proprietary Limited with, among others, Citibank, N.A., London
   Branch, J.P. Morgan Limited and The Standard Bank of South Africa Limited (as mandated
   lead arrangers and bookrunners) and Citibank, N.A., South Africa Branch, JPMorgan Chase
   Bank, N.A., Johannesburg Branch and The Standard Bank of South Africa Limited (as
   underwriters and lenders) for the provision of a short-term equity bridge facility in a principal
   amount of up to R11 billion ("the Equity Bridge Facility").

   The board of directors of WHL (the "Board") is pleased to announce that the Company
   intends to raise a gross total of R10 billion through a fully underwritten renounceable rights
   offer ("the Rights Offer") for purposes of repaying the Equity Bridge Facility, subject to the
   satisfaction of the conditions precedent set out in paragraph 3 below.

   A further announcement setting out the full terms and finalisation information of the Rights
   Offer will be released on or about Tuesday, 2 September 2014.


  The Acquisition, completed on 1 August 2014, is part of WHL´s strategy to further expand its
  international operations in order to transform itself into a leading southern hemisphere
  fashion retailer with sufficient scale to compete effectively with global apparel retailers.

  The combination of WHL and David Jones (the "Enlarged Group") provides significant
  advantages that will benefit both companies and their customers. The Enlarged Group will
  have increased scale that will drive significant efficiencies through enhanced global sourcing
  and the ability to leverage common seasonality and fashion trends, improving value for the
  customer and overall profitability.

  The Acquisition was completed for A$2.15 billion* (R21.6 billion) in cash and was funded

  -   A$993 million (R10.0 billion) from the Group's cash holdings;
  -   A$891 million (R9.0 billion) from the Equity Bridge Facility (excluding transaction costs),
      which will be repaid with the proceeds from the Rights Offer; and
  -   A$264 million (R2.7 billion) from the senior syndicated facility made available by
      Commonwealth Bank of Australia, National Australia Bank Limited and Westpac Banking
      Corporation ("the Australian Senior Facility").

      * All A$ figures have been converted at the R/A$ exchange rate of 10.0675

  In light of the foregoing and the Enlarged Group's capital structure, the Board has formed
  the view that it is prudent to raise equity capital from Qualifying Shareholders (WHL ordinary
  shareholders registered in the WHL share register on the Record Date (as specified below),
  excluding holders of treasury shares and WHL's American Depository Receipts, and who do
  not have their registered address in any jurisdiction in which it would be unlawful to make
  the Rights Offer) in order to repay the Equity Bridge Facility used to fund the Acquisition.

  In reaching this view, the Board has given due consideration to the continued
  implementation of the Enlarged Group's strategy.


  The implementation of the Rights Offer is subject to the fulfilment of the following conditions

  -   approval by the JSE of the circular relating to the Rights Offer ("the Rights Offer
  -   approval by the JSE of the application for the listing of the Letters of Allocation
      envisaged in terms of the Rights Offer and of the application for listing of any Rights
      Offer shares required for implementation of the Rights Offer on the JSE; and
  -   any other relevant approvals required by the JSE.


  Subject to the fulfilment of the conditions precedent as set out in paragraph 3 above, the
  proposed salient dates and times for the Rights Offer are set out below:

Finalisation announcement released on SENS                                Tuesday, 2 September
Last day to trade in WHL ordinary shares in order to participate           Friday, 5 September
in the Rights Offer (cum rights)
WHL ordinary shares commence trading ex-rights at 09:00 on                 Monday, 8 September
Listing of and trading in the Letters of Allocation on the                Monday, 8 September
exchange operated by the JSE commences at 09:00 on
Rights Offer Circular and form of instruction posted to                    Tuesday, 9 September
certificated Qualifying Shareholders
Record Date for the Rights Offer                                           Friday, 12 September
Rights Offer opens at 09:00 on                                             Monday, 15 September
Letters of Allocation credited to an electronic account held at the        Monday, 15 September
Computershare Investor Services Proprietary Limited (the
"Transfer Secretaries") in respect of certificated Qualifying
CSDP or broker accounts credited with rights in respect of                  Monday, 15 September
dematerialised Qualifying Shareholders
Rights Offer Circular and Form of Instruction, where applicable,           Tuesday, 16 September
posted to dematerialised Qualifying Shareholders
Last day for trading Letters of Allocation on the exchange                Thursday, 18 September
operated by the JSE
Listing of Rights Offer shares and trading therein on the                   Friday, 19 September
exchange operated by the JSE commences at 09:00 on
Payment to be made and Form of Instruction to be lodged with                Friday, 26 September
the Transfer Secretaries by certificated Qualifying Shareholders
by 12:00 on
Rights Offer closes at 12:00 on                                             Friday, 26 September
Record Date for the Letters of Allocation                                   Friday, 26 September
Rights Offer shares issued on or about                               Monday, 29 September
Entitlement in respect of subscriptions for Rights Offer shares             Monday, 29 September
available from
Central Securities Depository Participant's ("CSDP") or Broker              Monday, 29 September
accounts of dematerialised Qualifying Shareholders
credited/debited and updated with Rights Offer shares
Share certificates posted to certificated Qualifying Shareholders            Monday, 29 September
by registered post on or about
Results of the Rights Offer and basis of allocation of excess                Monday, 29 September
Rights Offer shares announced on SENS
Results of the Rights Offer and basis of allocation of excess               Tuesday, 30 September
Rights Offer shares published in the South African press
Rights Offer shares in respect of successful excess applications             Wednesday, 1 October
 (if applicable) issued on or about
 CSDP or broker accounts of dematerialised Qualifying                         Wednesday, 1 October
 Shareholders credited/debited and updated with Rights Offer
 shares in respect of successful excess applications (if
 Share certificates in respect of successful excess applications (if          Wednesday, 1 October
 applicable) posted to certificated Qualifying Shareholders by
 registered post on or about
 Refund cheques posted to certificated Qualifying Shareholders                 Thursday, 2 October
 in respect of unsuccessful excess applications (if applicable) on or about


1.   Share certificates in respect of WHL ordinary shares may not be dematerialised or re-materialised between
     Monday, 8 September 2014 and Friday, 12 September 2014, both days inclusive.
2.   CSDP effect payment on a delivery versus payment basis in respect of dematerialised Shares.
3.   Dematerialised Qualifying Shareholders are required to inform their CSDP or brokers of their instructions in
     terms of the Rights Offer in the manner and time stipulated in the agreement governing the relationship between
     the Qualifying Shareholder and their CSDP or Broker. Dematerialised Qualifying Shareholders are advised to
     contact their CSDP or broker as early as possible to establish what the cut-off dates and times are for
     acceptance of the Rights Offer, as set out in the custody agreement, as this may be earlier than the proposed
     closing time of the Rights Offer.
4.   Any changes to the dates and times will be announced on SENS and in the press.
5.   All times are South African Standard time.


     Shareholders are advised that the final terms, and pro forma financial effects, of the Rights
     Offer will be announced in due course. Shareholders are accordingly advised to exercise
     caution when dealing in the Company's securities until a further announcement regarding
     the Rights Offer is made.

Cape Town
29 August 2014

Investor contacts:
Ralph Buddle
Head of Corporate Finance and Investor Relations
T: +21 27 407 3250
M: + 27 83 412 4923

Joint Bookrunners and Underwriters
Citigroup Global Markets Limited ("Citi")
J.P. Morgan Securities plc ("J.P. Morgan")
The Standard Bank of South Africa Limited ("Standard Bank")

Transaction Sponsor to WHL:
Standard Bank

Lead Independent Sponsor to WHL:
Rand Merchant Bank (a division of FirstRand Bank Limited)

Legal advisers to WHL
Linklaters LLP
Webber Wentzel
Gilbert + Tobin

Legal advisers to the Joint Bookrunners
Latham & Watkins (London) LLP
Bowman Gilfillan Inc.

Financial Adviser

This announcement is not for distribution, directly or indirectly, in or into the United States
(including its territories and dependencies, any State of the United States and the District of
Columbia), Canada and Japan.

This announcement includes certain "forward-looking statements" that reflect the current views
or expectations of the Board with respect to future events and financial and operational
performance. All statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements, including, without limitation, those concerning: the Group's
strategy; the economic outlook for the industry; use of the proceeds of the Rights Offer; the
Group's ability to successfully integrate the operations of David Jones and recognise expected
synergies; future operating results; growth prospects; and the Enlarged Group's liquidity and
capital resources and expenditure. These forward-looking statements are not based on
historical facts, but rather reflect the Group's current plans, estimates, projections and
expectations concerning future results and events and generally may be identified by the use of
forward-looking words or phrases such as "believe", "expect", "anticipate", "intend", "should",
"planned", "may", "potential" or similar words and phrases.

This announcement does not constitute an offer of, or an invitation to purchase, any securities
of the Company in any jurisdiction. This announcement does not constitute or form a part of any
offer or solicitation to purchase or subscribe for securities in the United States. The securities
mentioned herein (the "Securities") have not been, and will not be, registered under the United
States Securities Act of 1933 (the "Securities Act"). The Securities may not be offered or sold in
the United States absent registration or an applicable exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act. There will be no public offer of the
Securities in the United States, Canada and Japan.

Citi, J.P. Morgan, Standard Bank and Rothschild are acting exclusively for the Company and no
one else in connection with the Rights Offer. They will not regard any other person (whether or
not a recipient of this announcement) as their respective clients in relation to the Rights Offer
and will not be responsible to anyone other than the Company for providing the protections
afforded to their respective clients nor for giving advice in relation to the Rights Offer or any
transaction or arrangement referred to herein. No representation or warranty, express or
implied, is made by Citi, J.P. Morgan, Standard Bank and Rothschild as to the accuracy,
completeness or verification of the information set forth in this announcement, and nothing
contained in this announcement is, or shall be relied upon as, a promise or representation in this
respect, whether as to the past or the future.

Citi, J.P. Morgan, Standard Bank and Rothschild assume no responsibility for its accuracy,
completeness or verification and, accordingly, disclaim, to the fullest extent permitted by
applicable law, any and all liability which they might otherwise be found to have in respect of this
announcement or any such statement.

Date: 29/08/2014 08:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.
Source: JSE Securities Exchange - SENS
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