| Thu 10 Mar 2005, 9:27 | | PEERMONT GLOBAL ACQUIRES HOTELS IN BOTSWANA |
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Peermont Global Limited - Peermont Global Acquires Hotels In Botswana
PEERMONT GLOBAL LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 1995/004449/06)
SHARE CODE: PTG
ISIN: ZAE000058053
(`PEERMONT GLOBAL` OR `THE COMPANY`)
PEERMONT GLOBAL ACQUIRES HOTELS IN BOTSWANA
Peermont Global today announced that Peermont Global (Botswana), its 60% - held
Botswana subsidiary, has acquired the Syringa Hotel in Gaborone and the Syringa
Lodge in Francistown for a total purchase consideration of BWP 47,5 million
(approximately R64 million). The acquisition of the News Cafe and Spur
franchises at these properties is included in the transaction.
The Syringa Hotel in Gaborone consists of 67 luxury self-catering suites, a News
Cafe-branded restaurant and conference facilities. The Syringa Lodge in
Francistown consists of 53 rooms, a Spur-branded restaurant and conference room.
Peermont Global, the manager of The Grand Palm Hotel Casino and Convention
Resort in Gaborone, will also enter into a management contract to manage the two
new Syringa properties.
Ernie Joubert, CEO of Peermont Global said: `the Syringa Hotel in Gaborone,
which opened just over a year ago, represents a high-quality addition to our
Gaborone hotel portfolio. Being a high-end 3 star hotel, it complements rather
than competes with our existing hotel properties. It will be rebranded as the
Mondior Summit, tying in with our similar operations in South Africa. The
Syringa Lodge is our first property in Francistown and is primarily a value for
money business hotel. We intend to rebrand it as the Metcourt Inn, similar to
our value for money operation in Gaborone.`
Peermont Global (Botswana) financed the acquisition through the issue of
unsecured corporate notes amounting to a face value of BWP 25 million and a bank
loan, secured by a mortgage bond over the two Syringa properties, of BWP 25
million. The corporate notes were issued at a fixed rate of 12,25% and are
redeemable in 5 years. The variable-rate bank loan carries interest at 2% below
the Botswana prime rate, currently at 15,75%, and is repayable over a 10-year
period.
The two Syringa properties are estimated to have generated a combined EBITDA of
BWP 9,6 million from revenues of BWP 18,5 million for the 12 months ended 28
February 2005. The transaction became effective on 4 March 2005.
10 March 2005
Enquiries
Peermont Global 011 267 9200
Ernie Joubert 011 267 9207
Anthony Puttergill 011 267 9209
College Hill 011 447 3030
Johannes van Niekerk 082 921 9110
Nicola White 083 293 1146
Background notes
Peermont Global Limited designs, develops, owns and manages hotel, gaming,
convention and leisure interests. The group has a strong market position in
Gauteng where it operates the Caesars Gauteng Hotel Casino and Convention
Resort. In addition, Peermont Global has a presence in Mpumalanga, KwaZulu-Natal
and Botswana, where it has an ownership interest and manages the operations of
the Graceland Hotel Casino and Country Club in Secunda, Mondazur Resort Estate
Hotel at San Lameer and The Grand Palm Hotel Casino and Convention Resort in
Gaborone.
Date: 10/03/2005 09:18:10 AM
Produced by the JSE SENS Department
