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Update On Hollard Insurance Company Limited Liquidation Application And Rescission Proceedings
LABAT AFRICA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/001616/06)
(“Labat Africa” or “the Company”)
ISIN Code: ZAE000018354 Share Code: LAB
FSE Code: LEI 9845000R73DF5EE41J88
UPDATE ON HOLLARD INSURANCE COMPANY LIMITED LIQUIDATION APPLICATION AND
RESCISSION PROCEEDINGS
Shareholders are referred to the Company's Annual Financial Statements Y/E May 2024,
published on 13 December 2024, regarding the legal proceedings instituted by The Hollard
Insurance Company Limited ("Hollard") against Labat Africa Limited ("Labat" or "the
Company"). The Board wishes to provide shareholders with the following update.
HOLLARD LIQUIDATION APPLICATION
Hollard instituted a liquidation application against Labat under case number 2025-171902
on 4 August 2026, seeking the winding-up of Labat arising from a judgment granted against
Labat on 19 January 2024 under case number 2020/34408, in terms of which Hollard
obtained judgment for approximately R20 million. The underlying proceedings related to
obligations arising from a deed of suretyship and indemnity associated with Force Fuel (Pty)
Ltd. This constitutes a historical debt of Labat dating back to 2020. The Company disputes
the amount claimed by Hollard and there is a material discrepancy between the amount
claimed by Hollard and the amount which the Company contends is properly due and
owing, which discrepancy is currently being challenged before the Court.
Prior to the liquidation application being adjudicated, however, Labat instituted an
application under case number 2026-096933 seeking, inter alia, the rescission of the 19
January 2024 judgment, together with a stay of further proceedings pending the finalisation
of the rescission application. The rescission application remains pending and unopposed.
The liquidation application and the Company's application to postpone the liquidation
proceedings pending the outcome of the rescission application were heard on 1
September 2026, and judgment has been reserved. The Board wishes to emphasise that the
outcome of the liquidation proceedings does not dispose of the separate rescission
proceedings, which remain pending before the Court.
COMPANY'S POSITION
The Company continues to pursue the rescission proceedings and will consider and, where
appropriate, pursue such further lawful steps and remedies as may be available to protect
the interests of Labat and its shareholders. The Company has, however, made the material
facts relating to the proceedings available to shareholders in this announcement and will
continue to comply with its disclosure obligations under the JSE Listings Requirements and
applicable law.
The Company will, however, continue to take all lawful steps available to protect the
interests of Labat and its shareholders.
ENGAGEMENT WITH HOLLARD
Notwithstanding the pending legal proceedings, and consistent with the Company's
approach to responsibly managing its litigious exposure and creditor obligations, Labat has
also taken steps to engage with Hollard with a view to achieving an amicable out-of-court
settlement.
The Company's attorneys, PJS Attorneys, have confirmed that since February 2026 Labat
has proactively entered settlement and repayment arrangements with various creditors
who had instituted, or threatened to institute, proceedings against the Company. These
arrangements demonstrate the Company's commitment to resolving disputes responsibly
and meeting its financial obligations.
The Company is applying the same constructive and responsible approach to its
engagement with Hollard.
WAY FORWARD
Labat remains committed to reaching a commercially viable settlement with Hollard
outside of the Court process. Should the current negotiations not result in an acceptable
settlement, the Company will continue to assess its position and consider such further lawful
steps and remedies as may be available to it, having regard to the interests of the Company
and its shareholders.
For the avoidance of doubt, this announcement should not be construed as an admission
by Labat of the correctness of the underlying judgment or of any matters beyond the
existence of the judgment itself, which the Company expressly acknowledges.
The Board will continue to assess developments and will make further announcements to
shareholders as and when required in accordance with the JSE Listings Requirements and
applicable law.
JOHANNESBURG
9 September 2026
JSE Sponsor
Vunani Sponsors
Date: 09/09/2026 03:22:00
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