Potential competing Cash Offer for Chagala

Following the AIMS Offer last week at US$1.55 per share, Chagala has received a potential competing bid indicated at US$2.15 per share, in cash which will be made by a special purpose vehicle (the “SPV”) to be procured by TIPP Investments PCC (“TIPP”). For the avoidance of doubt, the cash offer will not be made by TIPP.

The directors of Chagala have therefore recommended that shareholders do not accept the AIMS Offer and instead await the making of the SPV offer.

At US$2.15 per share, the TIPP offer is still significantly below our last estimated NAV for the Company of US$3.54 – approximately a discount of 40%; but significantly above the latest average traded value of US$ 1.25 – approximately 70% premium.

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