| Fri 23 Mar 2012, 16:08 | | KDV - Kaydav Group Limited - Kaydav subsidiary acquires property letting |
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KDV
KDV
KDV - Kaydav Group Limited - Kaydav subsidiary acquires property letting
enterprise
KAYDAV GROUP LIMITED
Incorporated in the Republic of South Africa
(Registration number 2006/038698/06)
JSE code: KDV & ISIN: ZAE000108940
("the group" or "KayDav")
KAYDAV SUBSIDIARY ACQUIRES PROPERTY LETTING ENTERPRISE
INTRODUCTION
Shareholders are advised that KayDav`s wholly-owned subsidiary, Sign and Seal
Trading 154 (Pty) Ltd ("Sign and Seal") has concluded an agreement for the
acquisition of a property letting enterprise and related immovable property
situate at the remainder of Erf 1301, Ottery, Cape Town, Cape Division, also
known as Hi Tech Park, Bamboesvlei Road, Ottery, Cape Town (the "immovable
property") (collectively the "business") from I Foster Properties CC (the
"seller") (the "acquisition")
TERMS OF THE ACQUISITION AND SUSPENSIVE CONDITIONS
The total purchase price payable by Sign and Seal for the business is R 13 850
000, which amount includes VAT levied at a rate of 0% (the "purchase price").
The effective date in respect of the acquisition shall be the date of
registration of transfer of ownership of the immovable property into the name of
Sign and Seal (the "effective date").
The sum of R 1 385 000 will be paid by Sign and Seal as a cash deposit and will
be held in trust by the seller`s conveyancers until the effective date. The
balance of the purchase price will be discharged in cash on the effective date.
The acquisition is subject to the suspensive condition that Sign and Seal is
granted a loan for a minimum amount of R 9 695 000, by a financial institution
upon security of a first mortgage bond to be passed over the immovable property
within a period of 15 business days from 20 March 2012.
THE BUSINESS
The business is a property letting enterprise (together with the related
immovable property) which lets the relevant premises to Evertrade 168 (Pty) Ltd,
a wholly-owned subsidiary of KayDav.
RATIONALE FOR THE ACQUISITION
Sign and Seal is acquiring the business in order to secure the KayDav group`s
tenure of the premises which currently houses its head office as well as its
Ottery warehouse.
CATEGORISATION OF THE ACQUISITION
The acquisition is classified as a Category 2 transaction in terms of the JSE
Listings Requirements. The acquisition is not subject to the approval of
KayDav`s shareholders.
FINANCIAL EFFECTS AND CAUTIONARY
The financial effects of the acquisition are still in the process of being
finalised and will be published in due course. Shareholders of Kaydav are
advised to exercise caution when dealing in their shares until the financial
effects of the acquisition are announced.
23 March 2012
Sponsor
Java Capital
Date: 23/03/2012 16:08:01 Produced by the JSE SENS Department.
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