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AEL: ALLIED ELECTRONICS CORPORATION LIMITED - Cash payment in respect of fractional entitlement Cash payment in respect of fractional entitlement Allied Electronics Corporation Limited Incorporated in the Republic of South Africa Registration Number: 1947/024583/06 Share Code: AEL ISIN: ZAE000191342 Share Code: AEN ISIN: ZAE000191359 ("Altron" or the "Company") CASH PAYMENT IN RESPECT OF FRACTIONAL ENTITLEMENT 1. INTRODUCTION The definitions and interpretations commencing on page 6 of the Circular to shareholders dated Thursday, 9 February have been used in this SENS announcement. Shareholders are referred to the finalisation announcement released on SENS on Friday, 17 March 2017 confirming that all conditions precedent to the Restructure had been fulfilled and the implementation of the Restructure had commenced. 2. FRACTIONAL ENTITLEMENT Where an N Shareholder´s entitlement to A Shares issued in terms of the Repurchase Scheme Consideration, calculated on the basis of nine A Shares for every 10 N Shares held on the Repurchase Scheme Record Date, being Friday, 31 March 2017, results in a fractional Share entitlement, such fraction of an A Share will be rounded down to the nearest whole number, resulting in allocations of whole A Shares and a cash payment will be made to the N Shareholder for the fraction. In accordance with the Listing Requirements, the cash payment has been determined with reference to the weighted average traded price of the A Share traded on the JSE on Wednesday, 29 March 2017 (being the day after the last day to trade in the N shares), discounted by 10%. Shareholders are accordingly advised that the basis applicable in determining the cash payment for fractional entitlements is 974.38791 cents (1,082.65323 cents discounted by 10%). Example of fractional entitlement: This example assumes that an N Shareholder holds 125 N Shares at the close of business on the Repurchase Scheme Record Date. A Share entitlement = 125 x 90% (being the Repurchase Scheme Consideration ratio of the issue of nine A Shares for every 10 N Shares held on the Repurchase Scheme Record Date) = 112.5 A Shares. The rounding provision described above is then applied and the Shareholder will receive: 112 A Shares in respect of the 125 N Shares held and a cash payment for the fractional entitlement based on the 97974.38791 cents noted above of 974.38791 x 0.5 = 487.19395 cents. The cash received by N Shareholders for the fractional entitlement is part of the Repurchase Scheme Consideration The cash for the fractional entitlement does not constitute a dividend as defined in section 1 of Income Tax Act, consequently no dividend tax arises on the cash so received. However, this does not preclude the possibility of capital gains tax and income tax arising on the cash received and the tax implications will depend on the individual tax circumstances of each N Shareholder. N Shareholders should seek advice from appropriate professional advisers if they are in any doubt whatsoever about their tax position. Parktown, Johannesburg 30 March 2017 Joint financial advisor and sponsor to Altron Investec Bank Limited Joint financial advisor to Altron Rand Merchant Bank (A division of FirstRand Bank Limited) Legal advisor to Altron Edward Nathan Sonnenbergs Incorporated Legal advisor to VCP DLA Piper South Africa Services (Pty) Ltd Legal advisor to the Venter Family Lapin Attorneys Date: 30/03/2017 10:50:00 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 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 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.