| Tue 28 Jun 2011, 16:02 | | ELI - Ellies Holdings Limited - Property acquisitions in 2010 |
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ELI
ELI
ELI - Ellies Holdings Limited - Property acquisitions in 2010
Ellies Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2007/007084/06)
JSE code: ELI ISIN: ZAE000103081
("Ellies" or the "company")
PROPERTY ACQUISITIONS IN 2010
1. The transactions
During the course of 2010 Ellies, through its wholly owned subsidiary,
Ellies Properties (Pty) Limited acquired:
- a tract of land in Chloorkop from Tamryn Manor (Pty) Ltd for a
purchase consideration of R1 200 000 in terms of an agreement
entered into on 17 June 2010. Ryan Otto, a director of Ellies, has
a direct shareholding of 33.3% in the contracting vendor company
and is a beneficiary of the Tamryn Trust, which holds a further
33.3%. The transaction represented 0.24% of the market
capitalisation of Ellies at that date;
- a building in East London and a building in Port Elizabeth from
Vegtu Investments (Pty) Ltd for an aggregate purchase consideration
of R7 500 000 in terms of agreements entered into on 26 July 2010.
Ellie Salkow, a director of Ellies, is a trustee of the trust that
owns 100% of the contracting vendor company and the transaction
represented 1.45% of the market capitalisation of Ellies at that
date; and
- a building in Bloemfontein from the Wiltshire Property Trust for a
purchase consideration of R5 000 000 in terms of an agreement
entered into on 2 June 2010. Gary Wiltshire, a director of a
subsidiary of Ellies, is a trustee and beneficiary of the
contracting vendor and the transaction represented 0.94% of the
market capitalisation of Ellies at that date.
Since the transactions are with associates of directors of the company
or a material subsidiary of the company, the transactions are related
party transactions in terms of the JSE Listed Requirements.
Ellies was listed on the AltX at the time of entering into these
transactions and this announcement is therefore released in compliance
with section 21.11 of the JSE Listings Requirements.
At the date of this announcement, the transactions have been fully
implemented.
2. Terms of the disposal
The purchase considerations were settled in cash. The group raised loans
secured by mortgage bonds to fund the cash considerations.
The transactions, including warranties, were concluded on terms typical
for this type of transaction.
3. Rationale for the transactions
The transactions are in keeping with Ellies` intention to acquire and/or
refurbish certain existing properties from which it operated and certain
new premises. This is in order to enhance the company`s operational
efficiencies.
The land was purchased as it is adjacent to premises from which the
company operates and is integral to its expansion plans.
4. Pro forma financial effects of the transactions
The financial effects of the transactions, which are the responsibility
of the directors of Ellies, are not significant and have not been
disclosed.
28 June 2011
Sponsor
Java Capital (Proprietary) Limited
Date: 28/06/2011 16:02:03 Produced by the JSE SENS Department.
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