DISPOSAL BY PHUMELELA OF THE GOSFORTH PARK RACECOU
DISPOSAL BY PHUMELELA OF THE GOSFORTH PARK RACECOURSE AND CERTAIN MOVABLE ASSETS
PHUMELELA GAMING AND LEISURE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/016610/06)
("Phumelela")
ISIN: ZAE 000039269
Share Code: PHM
DISPOSAL BY PHUMELELA OF THE GOSFORTH PARK RACECOURSE AND CERTAIN MOVABLE ASSETS
1. Introduction
Phumelela is authorised to announce that it has concluded a sale agreement with
Gosforth Properties (Proprietary) Limited ("Gosforth Properties") in terms of
which Gosforth Properties will acquire the property making up the Gosforth
Racecourse, being portion 97 (Portion of Portion 8) of the Farm Elandsfontein
108, Gauteng, together with all the buildings, erections, fixed improvements and
certain movable assets situated thereon ("the property")("the disposal").
2. Terms of the disposal
2.1 The disposal consideration for the property is R18.5 million, plus value
added tax, payable as follows:.
2.1.1 An amount of R9.25 million will be received in cash against registration
of transfer of the property; and the balance, which will bear interest for 2
years at 12% and thereafter at prime minus 1% per annum, will be received in
equal monthly instalments over a period of 60 months.
2.1.2 The payment of the balance of the disposal consideration is to be secured
by a mortgage bond over the property and a notarial bond over certain of the
movable assets.
3. Rationale for the disposal
3.1 The consolidation of the horse racing industry in each of the provinces in
which Phumelela now operates has enabled management to rationalise overhead
structures and to realise cost and efficiency benefits. Further, additional
racetracks have been built at the Vaal and Turffontein racecourses, which has
enabled the closure of Gosforth Park racecourse.
4. Financial effects of the disposal
The disposal will not have a material effect on earnings or net asset value per
ordinary share.
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