THE SPAR GROUP LIMITED — M&A Activity 2026

May 18, 2026

SPAR

THE SPAR GROUP LIMITED

(Incorporated in the Republic of South Africa)

Registration number: 1967/001572/06

JSE and A2X share code: SPP

ISIN: ZAE000058517

("SPAR" or the "Group")

VOLUNTARY ANNOUNCEMENT: DISPOSAL OF THE UK BUSINESS ASSETS

1. DISPOSAL OVERVIEW

SPAR shareholders ("Shareholders") are hereby advised that SPAR has entered into an asset purchase agreement ("Agreement") with A.F. Blakemore & Son ("AFB") as part of its strategy to exit the United Kingdom. Under the Agreement, AFB will acquire the South-West England SPAR licence, 71 company-owned stores, associated warehouse and logistics infrastructure and related independent retailer supply agreements (the "Transactions").

Completion of the Transactions is subject to customary conditions, including lease assignments, and is expected to occur in stages between June and September 2026.

In addition, 63 further stores are being disposed of to third-party operators. These transactions are at an advanced stage and are expected to be completed by September 2026.

2. FINANCIAL IMPACT

Total gross proceeds from these Transactions is estimated to be approximately GBP13 million. After accounting for transaction, restructuring and closure costs, the overall net cash outcome is expected to be broadly breakeven.

The Group has previously recognised a EUR78.5 million impairment relating to the UK business, and no cash outflow is expected from these disposals.

Final financial effects, including IFRS adjustments, will be reported to Shareholders in due course.

3. STRATEGIC RATIONALE

The disposal enables a clean exit from the United Kingdom, eliminating ongoing earnings drag and management distraction, while releasing capital and capacity to focus on core markets and strategic priorities. The Agreement with AFB also supports continuity of the SPAR brand in South-West England.

4. CATEGORISATION

The Transactions fall below the threshold for categorisation in terms of the JSE Listings Requirements and are therefore disclosed on a voluntary basis for information purposes only.

Umhlanga

18 May 2026

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Sponsor
One Capital

Corporate broker
Rand Merchant Bank (a division of FirstRand Bank Limited)