| Fri 24 Jun 2016, 16:02 | | FREEDOM PROPERTY FUND LIMITED - DISPOSAL BY WHOLLY OWNED SUBSIDIARY OF FREEDOM |
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FDP 201606240041A
DISPOSAL BY WHOLLY OWNED SUBSIDIARY OF FREEDOM
Freedom Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2012/129186/06)
Share code: FDP
ISIN: ZAE000185260
(“Freedom” or the “Group”)
DISPOSAL OF PORTION 1 OF ERF 493 LA HOFF TOWNSHIP BY FREEDOM WHOLLY OWNED
SUBSIDIARY, PANZAWEB PROPRIETARY LIMITED
1. INTRODUCTION
Shareholders are advised that Panzaweb Proprietary Limited (the “Company”), a
wholly owned subsidiary of Freedom, has entered into a sale agreement (“Sale
Agreement”) with Bridge City Housing Consortium Proprietary Limited (the
“Purchaser”) in terms of which the Purchaser will acquire (the “Sale”)
Portion 1 of Erf 493 La Hoff Township (the “Property”), for a total
consideration comprising R2,400,000 (two million and four hundred thousand
Rand) in cash (“Cash Consideration”).
2. RATIONALE FOR THE SALE
The Sale is in line with Freedom’s strategy of divesting of non-core assets
as set out in an announcement released on the Securities Exchange News Service
of JSE Limited (the “JSE”) on 15 March 2016 (the “Announcement”). The proceeds
will be applied within the Group in accordance with the details set out in
the Announcement.
3. BACKGROUND TO THE COMPANY AND THE PURCHASER
3.1. The Company
The Company is a wholly owned subsidiary of Freedom and the owner of the
Property, located in the Registration Division IP Province of North-West
and in extent 2,5175 ha (two comma five one seven five hectares).
3.2. The Purchasers
The Purchaser is a private company incorporated in South Africa.
4. MATERIAL TERMS OF THE SALE AGREEMENT
4.1. Conditions Precedent
All conditions precedent to the Sale, including approval by the boards of
directors of each of the Seller and the Purchaser and other than:
- the completion of a satisfactory due diligence by the Purchaser within
30 calendar days of execution of the Sale Agreement, that is, 21 June
2016; and
- the solvency of the Purchaser having been confirmed and no judgement/s
or adverse report/s having been reported against its name,
have been fulfilled.
4.2. Sale Consideration
The Cash Consideration must be paid to the Company or the Company’s nominee
on or before the date of registration of the Property into the name of the
Purchaser or the Purchaser’s nominee, and will be secured by means of a
bank guarantee acceptable to Freedom.
4.3. Effective Date
The effective date of the Sale Agreement will be the date of fulfilment
(or waiver, as the case may be) of all of the conditions precedent set out
in paragraph 4.1 above.
4.4. Other
Freedom and the Purchaser have each provided warranties that are standard
to a transaction of this nature.
5. CATEGORISATION
Due to its relative size to the market capitalisation of Freedom, the Sale is
not categorisable in terms of the JSE Listings Requirements and this announcement
is made to the shareholders of Freedom for information purposes only.
Johannesburg
24 June 2016
Sponsor
Bravura Capital Proprietary Limited
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