| Tue 12 May 2009, 10:38 | | GDN - Gooderson - Acquisition of the Avuxeni Resort and Conference Centre |
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GDN
GDN
GDN - Gooderson - Acquisition of the Avuxeni Resort and Conference Centre
Gooderson Leisure Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1972/004241/06)
(JSE code: GDN & ISIN: ZAE000084984)
("Gooderson" or "the company")
ACQUISITION OF THE AVUXENI RESORT AND CONFERENCE CENTRE
1. INTRODUCTION
Alawill Investments (Pty) Limited ("Alawill"), a wholly owned subsidiary of
Gooderson, has purchased:
- the hotel business of Avuxeni resort and conference centre ("Avuxeni
business") from Jansen Van Vuuren Asset Trust and Avuxeni Management
Services CC; and
- the property defined as Portion 77 of the remaining Portion of Portion
3 of the farm Rietspruit 412 Modimolle ("Avuxeni property") from
Avuxeni Resort and Conference Centre Investments (Pty) Limited.
The Avuxeni business and Avuxeni property are hereafter collectively
referred to as the Avuxeni resort.
2. DESCRIPTION OF AVUXENI RESORT
The 19.11 ha Avuxeni resort is situated between Bela Bela (Warmbaths) and
Modimolle ( Nylstroom) and lies within the heart of the Waterberg Area. It
consists of 54 self catering units and four conference rooms that can
accommodate up to 320 delegates. The facilities include a fully licensed
restaurant, cocktail bar, fully equipped conference facilities, two
swimming pools (one hot), putt-putt course, tennis courts and volley ball
court.
3. RATIONALE FOR ACQUISITION OF AVUXENI RESORT
Gooderson manages and provides accommodation, food and beverage and
restaurant services to leisure, international and conference tourists in
the KwaZulu-Natal province.
The acquisition of Avuxeni resort will expand Gooderson`s portfolio and
product base beyond the borders of KwaZulu-Natal, and will fit in with the
company`s mixed-use resort model. Gooderson intends to upgrade the resort
to the standard of other Gooderson properties and further expansion will
take place.
4. TERMS & CONDITIONS OF THE ACQUISITION
4.1 On 5 May 2009 Alawill entered into an agreement for the purchase of
the Avuxeni resort with effect from 1 July 2009 ("effective date") for
an amount of R7.5 million, payable on the effective date. A deposit of
R 1 591 000 million was paid on 8 May 2009.
4.2 The purchase of the Avuxeni business is subject to the simultaneous
purchase of the Avuxeni property by Alawill, and visa versa.
4.3 The purchase price will be funded out of current cash resources of
Gooderson.
5. FINANCIAL EFFECTS OF THE ACQUISITION
The value of the net assets of the acquisition are R4.3 million and the
profits attributable to the net assets are R261 000, as per the audited
annual financial statements of the Avuxeni Resort for the year ended 28
February 2008. No financial effects are disclosed as the financial effects
on the net assets, net tangible assets, earnings per share and headline
earnings per share of the company is not significant; being less than 3%.
Durban
12 May 2009
Designated Adviser
Exchange Sponsors
Date: 12/05/2009 10:38:03 Produced by the JSE SENS Department.
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