Notice of annual general meeting
Pick n Pay Holdings Limited

The 29th annual general meeting (AGM) of shareholders of Pick n Pay Holdings Limited (the Company) for the year ended 28 February 2010 will be held at 10h00, or as soon as the annual general meeting for Pick n Pay Stores Limited is completed, on Friday, 18 June 2010. Registration for attendance at the AGM will commence at 09h00.

The venue will be the conference centre at the registered office, Pick n Pay Office Park, 101 Rosmead Avenue, Kenilworth, Cape Town, 7708.

The following business will be transacted and resolutions proposed, with or without amendment:

1. ORDINARY RESOLUTION NUMBER 1

Approval of annual financial statements

“Resolved that the annual financial statements of the Company and its subsidiaries, for the year ended 28 February 2010, are hereby adopted.”


2. ORDINARY RESOLUTION NUMBER 2

Appointment of auditors

“To reappoint KPMG Inc. as independent auditors of the Company and to appoint Mr P Farrand as the designated auditor to hold office for the ensuing year.”

Note that the Audit committee recommend the reappointment of KPMG Inc. as auditors of the Company with Mr P Farrand as designated auditor.


3. ORDINARY RESOLUTION NUMBER 3

Reappointment of directors

RD Ackerman and RP de Wet retire in accordance with the Company’s articles of association, and, being eligible, offer themselves for re-election. Curricula vitae of those directors standing for re-election are presented here.

Accordingly, to consider and, if deemed fit, to re-elect those directors by way of passing the separate ordinary resolutions set out below:

Ordinary resolution number 3.1

Appointment of Raymond Ackerman as director

“Resolved that RD Ackerman be and is hereby elected as a director of the Company.”

Ordinary resolution number 3.2

Appointment of René de Wet as director

“Resolved that RP de Wet be and is hereby elected as a director of the Company.”


4. ORDINARY RESOLUTION NUMBER 4

Appointment of Audit committee members for the ensuing year

“As recommended by the Board, it is resolved that RP de Wet (Chairman) and HS Herman be appointed as the Company’s Audit committee members for the ensuing year.”


5. ORDINARY RESOLUTION NUMBER 5

Directors’ fees for the year ending 28 February 2011

“Resolved that the directors’ fees for the year ending 28 February 2011 be as follows:

  • Non-executive directors not serving on the Pick n Pay Stores Limited board, if any, be increased by R3 000, to R53 000 per annum.”


6. SPECIAL RESOLUTION NUMBER 1

General approval to repurchase Company shares

“Resolved that the Company hereby approves, as a general approval contemplated in sections 85 and 89 of the Companies Act No. 61 of 1973 (as amended) (Companies Act), the acquisition by the Company or any of its subsidiaries from time to time of the issued shares of the Company, upon such terms and conditions and in such amounts as the directors of the Company may from time to time determine, but subject to the articles of association of the Company, the provisions of the Companies Act and the JSE Limited (JSE) Listings Requirements (JSE Listings Requirements) as presently constituted and which may be amended from time to time, and provided that acquisitions by the Company and its subsidiaries of shares in the capital of the Company may not, in the aggregate, exceed in any one financial year 5% (five percent) of the Company’s issued share capital of the class of shares acquired from the date of the grant of this general approval.”

Additional requirements imposed by the JSE Listings Requirements

It is recorded that the Company or its subsidiaries may only make a general acquisition of shares if the following JSE Listings Requirements are met:

a.

any such acquisition of shares shall be effected through the order book operated by the JSE trading system and done without any prior understanding or arrangement between the Company or its subsidiaries and the counterparty or other manner approved by the JSE;

b.

the general approval shall only be valid until the Company’s next annual general meeting, or for 15 (fifteen) months from the date of passing of this special resolution, whichever period is shorter;

c.

a paid press announcement will be published as soon as the Company and/or its subsidiaries has/have acquired shares in terms of this authority constituting, on a cumulative basis, 3% (three percent) of the number of shares of the class of shares acquired in issue at the time of granting of this general approval and for each 3% (three percent) in aggregate of the initial number of that class of shares acquired thereafter, which announcement shall contain full details of such acquisitions as required by rule 11.27 of the JSE Listings Requirements;

d.

in determining the price at which the Company’s shares are acquired by the Company or its subsidiaries in terms of this general approval, the maximum price at which such shares may be acquired may not be greater than 10% (ten percent) above the weighted average of the market value at which such shares are traded on the JSE, as determined over the 5 (five) business days immediately preceding the date of the acquisition of such shares by the Company or its subsidiaries;

e.

in the case of a derivative (as contemplated in the JSE Listings Requirements), the price of the derivative shall be subject to the limitations set out in section 5.84(a) of the JSE Listings Requirements; and

f.

the Company and/or its subsidiaries may not repurchase any shares in terms of this authority during a prohibited period, as defined in the JSE Listings Requirements, unless the Company and/or its subsidiaries has in place a repurchase programme, where dates and quantities of shares to be traded during the prohibited period are fixed and full details of the programme have been disclosed in an announcement over SENS prior to the commencement of the prohibited period.

Statement by the Board of directors of the Company

Pursuant to, and in terms of, the JSE Listings Requirements, the Board of directors of the Company hereby state that:

a.

the intention of the directors of the Company is to utilise the general authority to acquire shares in the capital of the Company if at some future date the cash resources of the Company are in excess of its requirements or there are other good grounds for doing so. In this regard the directors will take account of, inter alia, an appropriate capitalisation structure for the Company, the long-term cash needs of the Company and the interests of the Company;
b. in determining the method by which the Company intends to repurchase its securities, the maximum number of securities to be repurchased and the date on which such repurchase will take place, the directors of the Company will only make repurchases if at the time of the repurchase they are of the opinion that:

b.1

the Company and its subsidiaries will, after the repurchase, be able to pay their debts as they become due in the ordinary course of business for the
12- (twelve) month period following the date of this notice of the annual general meeting;

b.2

the consolidated assets of the Company and its subsidiaries, fairly valued and recognised and measured in accordance with the accounting policies used in the latest audited financial statements, will, after the repurchase, be in excess of the consolidated liabilities of the Company and its subsidiaries for the 12- (twelve) month period following the date of this notice of the annual general meeting;

b.3

the issued share capital and reserves of the Company and its subsidiaries will, after the repurchase, be adequate for the ordinary business purposes of the Company and its subsidiaries for the 12- (twelve) month period following the date of this notice of the annual general meeting; and

b.4

the working capital available to the Company and its subsidiaries will, after the repurchase, be adequate for the ordinary business requirements of the Company and its subsidiaries for the 12- (twelve) month period following the date of this notice of the annual general meeting.

Reason and effect of special resolution number 1

The reason for special resolution number 1 is to grant the Company a general authority in terms of the Companies Act and the JSE Listings Requirements for the acquisition by the Company or any of its subsidiaries of shares issued by the Company, which authority shall be valid until the earlier of the next annual general meeting of the Company or the variation or revocation of such general authority by special resolution by any subsequent general meeting of the Company, provided that the general authority shall only be valid until the Company’s next annual general meeting, or for 15 (fifteen) months from the date of passing of this special resolution, whichever period is shorter. The passing and registration of this special resolution will have the effect of authorising the Company and/or any of its subsidiaries to acquire shares issued by the Company.


7. ORDINARY RESOLUTION NUMBER 6

General authority over unissued shares

“Resolved that 26.4 million (5% of issued share capital) of the unissued authorised ordinary shares in the Company (which for the purposes of the JSE Listings Requirements and these resolutions shall include treasury shares) be and are hereby placed under the control of the directors until the next annual general meeting, subject to the provisions of the Companies Act and the JSE Listings Requirements and the condition that no issue of these shares will be made if it could have the effect of changing control of the Company.”

No issue of these shares is contemplated at the present time and no issue will be made that could effectively change the control of the Company without the prior approval of shareholders in a general meeting.

 

 

 

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