ELI: ELLIES HOLDINGS LIMITED - Disposal of various properties by Ellies |
ELI: ELLIES HOLDINGS LIMITED - Disposal of various properties by Ellies Disposal of various properties by Ellies ELLIES HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2007/007084/06) JSE share code: ELI ISIN: ZAE000103081 ('Ellies' or the 'Company') DISPOSAL OF VARIOUS PROPERTIES BY ELLIES INTRODUCTION Shareholders are advised that on 24 February 2020 ('signature date'), Ellies, through its wholly-owned subsidiary Ellies Properties Proprietary Limited ('Ellies Properties'), concluded various agreements ('the Sale Agreements') to sell by public auction as a going concern, the rental enterprises comprising the following properties ('the transactions'): Property location Purchase price Purchaser ('the purchasers') Erf 1930, 1931 and 1932 situated at R 3,200,000 MAA Property Trust 9 Robert Street and 6 Drury Street, North End, Port Elizabeth Erf 1671 and Erf 28416 situated at 27 Grey R 4,300,000 JR 1146 Investments CC Street, Hilton, Bloemfontein Erf 45 situated at 8 Christie Crescent, R 7,200,000 The Spar Group Limited Vintonia, Nelspruit Erf 236, situated at 23 Bitcon Road, Village R 1,650,000 Vegtu Investments (Pty) Ltd Deep Johannesburg Erf 264, situated at 5 Inglestone Road, R 2,000,000 Vegtu Investments (Pty) Ltd Village Deep Johannesburg The rental enterprises include the immovable property, land and buildings, together with all other aspects of the business necessary for carrying on the rental enterprise, including all existing lease agreements pertaining to the property and any tenant deposits. The properties currently have existing leases agreements with Ellies Electronics Properties Limited, a wholly-owned subsidiary of Ellies. Except for the properties purchased by Vegtu Investments Proprietary Limited ('Vegtu'), the purchasers are not considered to be related parties to Ellies. Vegtu is an associate of Ellie Salkow, who has been a director of Ellies within the 12 months preceding the transactions and who is a material shareholder of the Company. Accordingly, the disposal of 23 Bitcon Road, Village Deep, Johannesburg and 5 Inglestone Road, Village Deep Johannesburg are considered to be a related party transaction in accordance with the JSE Listings Requirements ('LR'). The Company is currently in discussions with the JSE regarding the related party transaction, and shareholders will be advised on the outcome of these discussions in due course. RATIONALE FOR THE TRANSACTIONS As previously stated, the Company has resolved to dispose of its investment properties and to lease back only those properties required for operations as a measure to return Ellies to sustainable profitability. The proceeds will be used to strengthen the balance sheet of the Company. SALIENT TERMS OF THE TRANSACTION The purchasers will acquire the respective properties, with effect from the date of registration of transfer of ownership into the purchasers´ name ('the effective date'), which is expected to be on or about 1 June 2020. Ownership, risk and benefit in the rental enterprises will pass to the purchasers as from the effective date. The purchase price of the properties will be settled in cash on the effective date, less any upfront deposits held in trust. The purchasers are liable for the agent´s commission payable in terms of the Sale Agreements. The Sale Agreements have all been concluded on the same terms, save for the purchase price, and there are no conditions precedent to the Sale Agreements. The Sale Agreements contain undertakings, warranties and indemnities which are normal for transactions of this nature. FINANCIAL INFORMATION The net asset value or book value of the properties has been extracted from the Company's interim results for the period ended 31 October 2019, which were prepared in terms of Ellies' accounting policies and International Financial Reporting Standards ('IFRS'). The profits attributable to the properties and earned by Ellies Properties for the period 1 May 2019 to 31 December 2019 are set out below: Property location Net asset value Profits attributable to the property Erf 1930, 1931 and 1932 situated at R 3,594,960 R263,209 9 Robert Street and 6 Drury Street, North End, Port Elizabeth Erf 1671 and Erf 28416 situated at 27 Grey R 4,722,067 R506,382 Street, Hilton, Bloemfontein Erf 45 situated at 8 Christie Crescent, R 6,300,203 R400,000 Vintonia, Nelspruit Erf 236, situated at 23 Bitcon Road, Village R 1,861,248 R337,575 Deep Johannesburg Erf 264, situated at 5 Inglestone Road, R 4,132,296 R240,000 Village Deep Johannesburg The above financial information relating to the profits attributable to the properties has been extracted from the unaudited management accounts for the period ended 31 December 2019. The management accounts were prepared in terms of Ellies´ accounting policies and IFRS. Ellies is satisfied with the quality of these management accounts for the purposes of this announcement. CATEGORISATION OF THE TRANSACTION Other than the related party transaction the above the transactions are individually classified as category 2 transactions in terms of the JSE Listings Requirements and accordingly are not subject to the approval of Ellies´ shareholders. 26 February 2020 Sponsor Java Capital Date: 26-02-2020 01:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS. |
2020-02-26 13:20:00 Source: JSE News Service (SENS) |
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Ellies Holdings Limited published this content on 26 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 February 2020 14:22:01 UTC