| Wed 28 Mar 2012, 11:53 | | GDN - Gooderson Leisure Corporation Limited - Disp |
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GDN
GDN
GDN - Gooderson Leisure Corporation Limited - Disposal of the Beach Hotel and
renewal of cautionary announcement
Gooderson Leisure Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1972/004241/06)
JSE Share Code: GDN ISIN: ZAE000084984
("Gooderson" or "the company")
DISPOSAL OF THE BEACH HOTEL AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
Shareholders are referred to the announcement on SENS dated 22 March
2012.
Gooderson, has accepted an offer to sell, as a going concern, the hotel
business and assets, of the Beach Hotel, Durban ("the Beach Hotel")
("the disposal") to Motsa Properties CC represented by Moses Boy Motsa
("the purchaser").
2. RATIONALE FOR DISPOSAL
Gooderson currently has two hotels on the Durban beachfront namely the
Tropicana Hotel which is owner occupied and the Beach Hotel which is
operated by, but not owned by Gooderson. Most of the target market has
moved to Umhlanga, Ballito and the offer received by Gooderson to
dispose of the Beach Hotel is a good offer. The Tropicana Hotel will
capitalize on the disposal with occupancy expected to increase
materially. The purchaser offered to buy the business as it intends to
increase its footprint in Durban.
3. DESCRIPTION OF THE BEACH HOTEL
The Beach Hotel is situated on Durban`s beachfront in close proximity to
major attractions, consists of 112 rooms, bars, restaurants and
conference venues and offers panoramic views overlooking the Durban
beachfront promenade and refreshing views of the ocean and all rooms are
air-conditioned.
The convenient location and variety of rooms makes Beach Hotel the ideal
choice for a family holiday or business trip.
4. TERMS AND CONDITIONS OF THE DISPOSAL
4.1 Gooderson accepted an offer to sell the business and assets of the
Beach Hotel to Motsa Properties CC represented by Moses Boy Motsa.
4.2 The selling price is R20 million and occupation date is 1 July
2012, subject to the signing of a legal agreement.
4.3 The sales proceeds will be used inter alia to settle certain
liabilities.
5. UNAUDITED PRO FORMA FINANCIAL EFFECTS OF THE DISPOSAL
The unaudited pro forma financial effects set out below are provided for
illustrative purposes only to provide information about how the disposal
may have impacted on Gooderson`s results and financial position. The pro
forma financial effects have been prepared in accordance with
International Financial Reporting Standards. Due to the nature of the
unaudited pro forma financial information, it may not give a fair
presentation of the company`s results and financial position after the
disposal. The unaudited pro forma financial effects are based on the
unaudited financial information of Gooderson for the six ended 31 August
2011. The directors of Gooderson are responsible for the preparation of
the unaudited pro forma financial effects.
Before the Pro forma Change
disposal After the
unaudited disposal
31 August unaudited
2011 31 August
2011
Earnings per share (cents) 0.75 12.96 100%
Headline earnings per share 0.73 0.89 21.92%
(cents)
Net asset value per share (cents) 117.68 129.75 10.25%
Net tangible asset value per 116.85 128.92 10.33%
share (cents)
Weighted average shares in issue 120 000 000 120 000 000
Number of shares in issue at 120 000 000 120 000 000
period end
Notes:
(1) For the purpose of calculating the earnings and headline earnings
per share, it is assumed that the disposal was implemented on 1
March 2011 and for the purpose of calculating the net asset value
and the net tangible asset value per share, it is assumed that the
disposal was implemented on 31 August 2011.
(2) The "Before the disposal" column has been extracted without
adjustment, from the interim results of Gooderson for the six
months ended 31 August 2011.
(3) The "After the disposal" earnings per share includes a profit on
the disposal of R14.48 million. This profit has been deducted for
the calculation of headline earnings per share. The "After the
disposal" earnings per share and headline earnings per share have
been adjusted to exclude the share of income and expenses of the
Beach Hotel.
(4) The "After the disposal" net asset value and net tangible asset
value per share have been adjusted to exclude the assets of the
Beach Hotel.
6 CATEGORISATION OF THE DISPOSAL
The disposal is categorised, in terms of the JSE Limited`s Listings
Requirements, as a Category 2 transaction and does not require
shareholders` approval.
7. RENEWAL OF CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement dated 22 March 2012, shareholders
are advised to continue exercising caution when dealing in the company`s
securities until a legal agreement is signed between the purchaser and
the seller.
8. FURTHER ANNOUNCEMENT
Shareholders will be notified once a formal agreement has been signed.
28 March 2012
Durban
Designated Adviser
Exchange Sponsors
Date: 28/03/2012 11:48:01 Produced by the JSE SENS Department.
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