| Fri 14 Oct 2011, 15:49 | | BIK - Brikor Limited - Sale of Olifantsfontein Property and cautionary |
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BIK
BIK
BIK - Brikor Limited - Sale of Olifantsfontein Property and cautionary
announcement
Brikor Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1998/013247/06)
(Share Code: BIK ISIN Code: ZAE000101945)
("Brikor" or "the Company")
SALE OF OLIFANTSFONTEIN PROPERTY AND CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
Shareholders are informed that Brikor has entered into a Sale of
Immovable Property Agreement ("sale agreement") on 11 October 2011,
subject to a condition precedent, for the sale of the following
immovable properties ("the transaction"):
- Portion 5 and Portion 26 (Portions of portion 15) of erf 1250,
Clayville Extension 14 Township; and
- Erven 390, 391 and 392, Clayville Extension 3 Township on 11
March 2011.
The above are collectively hereafter referred to as "Olifantsfontein"
or "the property".
2. BACKGROUND INFORMATION
Brikor is a manufacturer and supplier of clay bricks, roof tiles, clay
pipes and pavers as well as ancillary products and a producer of coal
to, in particular, the power suppliers. The company recently entered
into a comprehensive restructuring programme to restore operations to
profitability and to strengthen its financial position. Fundamental to
the restructuring programme, was regaining focus on core operations.
Certain assets and operations, such as Olifantsfontein, were
identified as non-core to the main business of Brikor and thus the
decision to dispose of them.
3. RATIONALE FOR THE DISPOSAL
The sale of Olifantsfontein is in line with Brikor`s strategy to
strengthen the group`s cash resources as well as improving its current
debt burden.
4. TERMS AND CONDITIONS OF THE DISPOSAL
4.1 On 11 October 2011, Brikor entered into a sale agreement for the
property to Kusasa Commodities 148 (Pty) Limited ("purchaser").
4.2 The purchase price payable for Olifantsfontein is the aggregate
of R 19 million excluding VAT.
4.3. The purchase price will be payable as follows:
4.3.1. Initial non refundable payment of R 2 million in cash to
Brikor, which has been received; and
4.3.2. the balance of R 17 million which will be paid to Brikor
against the registration of transfer of the property into
the name of the purchaser.
5. CONDITION PRECEDENT
The disposal is conditional upon the outstanding condition precedent
that the purchaser obtains approval of a loan by a financial
institution of not less than R 17,1 million upon the security of a
first mortgage bond to be registered over the property at such rates
of interest and on such conditions as are stipulated by the
institution to which application for the loan is made, by not later
than 30 days after date of signature.
6. UNAUDITED PRO FORMA FINANCIAL EFFECTS OF THE DISPOSAL
The unaudited pro forma financial effects will be published in due
course.
7. CATEGORISATION OF THE TRANSACTION
The transaction is categorised, in terms of the JSE Limited`s ("JSE")
Listings Requirements, as a Category 2 transaction and does not
require shareholders` approval.
8. CAUTIONARY ANNOUNCEMENT
Shareholders are advised to exercise caution in dealing in the
company`s securities on the JSE until such time as the financial
effects of the transaction are published. Shareholders will be
notified once the transaction becomes unconditional.
Nigel
14 October 2011
Designated Adviser
Exchange Sponsors
Date: 14/10/2011 15:49:01 Produced by the JSE SENS Department.
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