City Lodge Hotels Limited - Cautionary Announcemen
CLH
CLH
City Lodge Hotels Limited - Cautionary Announcement 11 April 2006
CITY LODGE HOTELS LIMITED
(Reg. No. 1986/002864/06)
(Incorporated in the Republic of South Africa)
Share Code: CLH
ISIN Code: ZAE000001483
("City Lodge")
ANNOUNCEMENT REGARDING AN EXPRESSION OF INTEREST BY HOSPITALITY PROPERTY FUND
LIMITED ("HOSPITALITY") IN REGARD TO A PROPOSED OFFER TO ACQUIRE ALL THE
ORDINARY SHARES IN CITY LODGE AND CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the announcement released by Hospitality, a
property loan stock company listed on the JSE in the Financial Real Estate
Sector, on SENS earlier today, regarding its interest in proposing an offer or
scheme of arrangement in terms of Section 311 of the Companies Act, No. 61 of
1973, to acquire all the ordinary shares in City Lodge ("the Potential
Transaction"). The potential transaction envisages Hospitality issuing to City
Lodge shareholders Hospitality A and B linked units having a current value
equating to R60,00 per City Lodge share.
An independent sub-committee of the board has been constituted, consisting of
Frank Kilbourn, Nigel Matthews, Ndumi Medupe and Stuart Morris, all of whom are
independent non-executives of City Lodge, to assess the Potential Transaction in
the context of the best interests of City Lodge shareholders and to deal with
matters incidental thereto on behalf of City Lodge. Shareholders will be
informed of further developments.
Should Hospitality proceed with the Potential Transaction, it could have an
impact on the price at which City Lodge ordinary shares trade on the JSE
Limited. Shareholders are accordingly advised to exercise caution when dealing
in their shares until a further announcement is made.
Sandton
11 April 2006
Sponsor
JP Morgan Equities Limited
Corporate law advisers
Edward Nathan
Date: 11/04/2006 01:05:07 PM Produced by the JSE SENS Department
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