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Definition

These are the conditions that must be met before a major transaction, such as the sale of a subsidiary or a take-over can take place. Typically, they could include the approval of the majority or a specific percentage of shareholders or the approval of the Competition Commission. For example, Invicta (IVT), announced a deal to purchase Dartcom SA (Pty) Ltd for R50m. The deal was subject to the following conditions precendent:
<pre>CONDITIONS PRECEDENT 
 
 The Transaction is subject to the fulfilment of the following conditions precedent which are normal for a 
 transaction of this nature: 
 
 7.1. Invicta board approval of the Transaction; 
 7.2. the shareholders of Invicta approving the Specific Repurchase; 
 7.3. Tuludi, New GX, Kgalauwane and Dartcom Group board and shareholder approvals; 
 7.4. the conclusion of a management agreement between New GX and the Dartcom Group in terms of which 
 New GX will manage the Dartcom Group for the three-year period following the Effective Date; 
 7.5. the agreement between Tuludi, New GX, Kgalauwane and Invicta becoming unconditional; and 
 7.6. the approval of relevant competition authorities, and any other regulatory approvals, if any, that may be 
 required. </pre>

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