Phumelela - Voluntary Announcement
Phumelela Gaming & Leisure Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/016610/06)
Share code: PHM ISIN: ZAE000039269
VOLUNTARY ANNOUNCEMENT
Shareholders are advised that Rand Sporting Club (Pty) Ltd (RSC), a wholly owned
subsidiary of Phumelela Gaming and Leisure Limited (PGL), has concluded an
agreement of sale in respect of the Newmarket Racecourse property together with
certain moveable assets, for an amount of R 22,000,100 (twenty two million one
hundred rand). The proceeds of the sale will be used to repay the outstanding
Racing Association (RA) loan of R 20,000,000 (twenty million rand) and as
consideration for the cancellation by the RA of `call` and `put` options in
respect of the property. PGL has simultaneously entered into an agreement with
the purchaser of the property, in terms of which PGL shall be entitled to use
the racing facilities for a period of seven years with the option of renewing
such use for successive periods of three years each. The purchaser intends
developing the property on a sport and recreation theme which will optimize
usage of the facilities and complement the horse racing experience. The
transaction once complete will practically eliminate long term borrowings and
make a small improvement in future earnings.
1 June 2005
Johannesburg
Sponsor and Investment Bank: Investec Bank Limited
Date: 01/06/2005 09:00:30 AM
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