| Wed 4 Apr 2012, 13:50 | | MZR - Mazor Group Limited - Mazor Acquires Property for the operations of |
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MZR
MZR
MZR - Mazor Group Limited - Mazor Acquires Property for the operations of
Compass Glass SA (Proprietary) Limited in Johannesburg
Mazor Group Limited
Incorporated in the Republic of South Africa
Registration number: 2007/017221/06
Share Code: MZR ISIN: ZAE000109823
("Mazor" or "the Company")
MAZOR ACQUIRES PROPERTY FOR THE OPERATIONS OF COMPASS GLASS SA (PROPRIETARY)
LIMITED ("COMPASS GLASS") IN JOHANNESBURG
1. INTRODUCTION
K2011134295 (South Africa) (Proprietary) Limited (`the purchaser"), a wholly
owned subsidiary of Mazor, entered into an agreement with Beaux Lane (S.A.)
Properties (Proprietary) Limited ("Beaux Lane" or "the seller") to acquire a
property located at Erf 234 Alrode Extension 2 Township, Johannesburg for a
total purchase price of R14 706 000 including VAT ("the purchase price") payable
upon transfer of the property into the name of the purchaser ("the
acquisition").
2. NATURE OF THE PROPERTY
Compass Glass has been operating from the property for 4 years. The property
measures 13 156 square meters and includes two separate, freestanding
warehouses, each of which has an office component. The property will continue to
be utilised by Compass Glass operations in Johannesburg.
3. EFFECTIVE DATE
The effective date of the acquisition is the date on which the property is
transferred into the name of the purchaser.
4. CONDITIONS PRECEDENT
The acquisition is subject, inter alia, to the following conditions precedent:
* The seller obtains the necessary investment committee approvals with 7 days
of the signature of the agreement; and
* The purchaser obtains the necessary board committee approvals for the
acquisition with 7 days of the signature of the agreement.
5. SETTLEMENT OF THE ACQUISITION
The acquisition will be settled in the following way:
* the purchaser shall pay a deposit of R645 000 out of cash reserves toward
the payment of the purchase price within 14 days of fulfilment of the
conditions precedent; and
* for the balance of the purchase price, the purchaser shall issue to the
seller, within than 21 days from the fulfilment of the conditions
precedent, an unconditional and irrevocable bank guarantee.
6. PRO FORMA FINANCIAL EFFECTS
The pro forma financial effects of the acquisition on Mazor`s earnings, headline
earnings, net asset value and net tangible asset value per share are less than
3% and, therefore, have not been presented.
7. RATIONALE FOR THE ACQUISITION
The acquisition will facilitate further expansion of the Compass Glass
operations in Johannesburg with the addition of further processing, stocking and
warehouse facilities.
8. FUNDING OF THE ACQUISITION
The acquisition will be funded by way of a mortgage bond over the property, the
terms of which are to still be finalised.
9. TRANSACTION CLASSIFICATION
The transaction is classified as a category 2 transaction in terms of the JSE
Limited Listings Requirements.
Cape Town
4 April 2012
Sponsor: Bridge Capital Advisors (Proprietary) Limited
Date: 04/04/2012 13:50:37 Produced by the JSE SENS Department.
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