DON - CAUTIONARY ANNOUNCEMENT IN RESPECT OF THE ACQUISITION OF A PROPERTY
PORTFOLIO FROM ELLWAIN INVESTMENTS (PROPRIETARY) LIMITED (`ELLWAIN`)
THE DON GROUP LIMITED
(Registration number 1946/023123/06)
Incorporated in the Republic of South Africa
Share code: DON ISIN: ZAE000008462
(`Don` or `the company`)
CAUTIONARY ANNOUNCEMENT IN RESPECT OF THE ACQUISITION OF A PROPERTY PORTFOLIO
FROM ELLWAIN INVESTMENTS (PROPRIETARY) LIMITED (`ELLWAIN`)
1. Introduction
In terms of an agreement dated 26 September 2001 between the Don and
Ellwain, which was approved by Don shareholders in the general meeting held on
29 November 2001, Ellwain granted to Don an option, capable of exercise on or
prior to 31 August 2004 (`the option`), to acquire a number of properties from
Ellwain (`properties`). These properties are currently being leased as hotel
properties by Don`s wholly owned subsidiary Lennoxley Investment Holdings
(Proprietary) Limited (`Lennoxley`).
The aggregate purchase consideration for the properties is to be determined
at an initial amount of R41 million escalating at a compound rate of 1% per
month, calculated from 1 September 2001 until the payment date.
Don has ceded the option to its wholly owned subsidiary, Granport
Investments (Proprietary) Limited, which exercised same on Friday 27 August
2004. (`the acquisition`).
The total purchase consideration, up to an amount of R57,525,000, will be
funded via a facility provided by the Industrial Development Corporation of
South Africa Limited. The balance will be funded by Don and/or Lennoxley.
2. Detailed announcement
A detailed announcement pertaining to the acquisition including the pro
forma financial effects thereof and the details of the properties being
acquired, will be announced simultaneously with the release of the audited
results in respect of the year ended 30 June 2004 on Friday, 3 September 2004.
Shareholders must exercise caution when dealing in their securities on the JSE
Securities Exchange South Africa until such time as the detailed announcement is
made.
Sponsor
Grant Thornton Corporate
Finance (Proprietary) Limited
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