| Tue 30 Jan 2007, 17:05 | | BNT - Bonatla - Further announcement regarding the |
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BNT
BNT
BNT - Bonatla - Further announcement regarding the acquisition of durban
point development company and disposal agreement with zenprop
(proprietary) limited
BONATLA PROPERTY HOLDINGS LIMITED
(Registration number 1996/014533/06)
Share code: BNT & ISIN: ZAE000013694
("Bonatla" or "the Company")
FURTHER ANNOUNCEMENT REGARDING THE ACQUISITION OF DURBAN POINT DEVELOPMENT
COMPANY AND DISPOSAL AGREEMENT WITH ZENPROP (PROPRIETARY) LIMITED
1. INTRODUCTION
Shareholders are referred to the announcement dated 25 January 2007, in
which Bonatla announced, amongst others, the acquisition of all shares and
claims that Renong Overseas Corporation SA (Pty) Limited holds in the
Durban Point Development Company ("DPDC"). Bonatla is now in a position to
announce that an agreement dated 25 January 2007 has been reached with
Zenprop (Pty) Ltd ("Zenprop"), whereby Bonatla has sold 70% of this
acquisition to The Truzen 15 Trust ("Truzen"), a trust through which is
controlled by the Board of Zenprop.
On 25 January 2007, Bonatla announced, in the same announcement referred to
above, an agreement to acquire Erf 44 Shelly Beach ("Shelly Beach
Development"). Bonatla is now in a position to announce that, consequential
upon the above agreement with Zenprop being finalized, Zenprop has, as set
out in a Heads of Agreement, acquired the right to purchase 70% of the
Shelly Beach property at Bonatla`s cost price.
2. RATIONALE
The rationale for these agreements is to implement Bonatla`s strategic
vision to bring value as quickly as possible to the development of the DPDC
and Shelly Beach projects, and other projects currently being contemplated,
by entering joint venture agreements with partners that have demonstrated
the requisite depth of resources, expertise and track record in developing
major real estate developments, through financing, project management, and
development management. These agreements with Zenprop, recognized as one of
the foremost property development and financing groups in South Africa,
fulfill Bonatla`s strategic objective with regards to the above projects.
Zenprop, who have a property portfolio in excess of R7 billion, has been
involved in the successful development of, amongst others, head offices for
Werksmans, General Motors and Sun International, and the new shopping
precinct, Atholl Square.
3. DETAILS OF THE AGREEMENTS
Bonatla has entered into a Sale of Shares Agreement ("the Agreement") dated
25 January 2007 with Truzen in terms of which 70% OF the shares and loan
accounts of ROCSA have been sold to Truzen for a total consideration of
R140 000 000.
A sum of R50 000 000 has been lodged by Zenprop in escrow with attorneys
Garlicke & Bousfield Inc in terms of an Escrow Agreement pending the
fulfillment of certain terms and conditions in the Agreement.
The balance of the purchase price will be payable in cash when all
suspensive conditions have been fulfilled.
The DPDC and Shelly Beach Development agreements are independent of each
other, at arms.
4. SUSPENSIVE CONDITIONS
The agreements are subject to the following conditions precedent:
- a due diligence exercise;
- the approval of the Competition Commission, JSE Limited and
Securities Regulation Panel; and
- the approval of Bonatla shareholders in general meeting.
In addition, the Shelley Beach Development agreement is subject to the
approval of the board of Zenprop.
5. FINANCIAL INFORMATION AND RENEWAL OF CAUTIONARY
A further announcement providing the financial effects of the disposal
detailed above will be made in due course. In addition, further
negotiations are still in progress and accordingly, shareholders should
continue to exercise caution when dealing in Bonatla ordinary shares.
6. DOCUMENTATION
The disposal constitutes a category 1 transaction in accordance with the
Listings Requirements of the JSE. Accordingly, a detailed circular,
together with a notice of general meeting, shall be posted to shareholders
in due course.
Sandton
30 January 2007
Sponsor
Vunani Corporate Finance (Pty) Limited
Date: 30/01/2007 17:05:17 Produced by the JSE SENS Department.
