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GDN - Gooderson Leisure Corporation Limited - Disposal of the Beach Hotel and renewal of cautionary announcement Gooderson Leisure Corporation Limited (Incorporated in the Republic of South Africa) (Registration number 1972/004241/06) JSE Share Code: GDN ISIN: ZAE000084984 ("Gooderson" or "the company") DISPOSAL OF THE BEACH HOTEL AND RENEWAL OF CAUTIONARY ANNOUNCEMENT 1. INTRODUCTION Shareholders are referred to the announcement on SENS dated 22 March 2012. Gooderson, has accepted an offer to sell, as a going concern, the hotel business and assets, of the Beach Hotel, Durban ("the Beach Hotel") ("the disposal") to Motsa Properties CC represented by Moses Boy Motsa ("the purchaser"). 2. RATIONALE FOR DISPOSAL Gooderson currently has two hotels on the Durban beachfront namely the Tropicana Hotel which is owner occupied and the Beach Hotel which is operated by, but not owned by Gooderson. Most of the target market has moved to Umhlanga, Ballito and the offer received by Gooderson to dispose of the Beach Hotel is a good offer. The Tropicana Hotel will capitalize on the disposal with occupancy expected to increase materially. The purchaser offered to buy the business as it intends to increase its footprint in Durban. 3. DESCRIPTION OF THE BEACH HOTEL The Beach Hotel is situated on Durban`s beachfront in close proximity to major attractions, consists of 112 rooms, bars, restaurants and conference venues and offers panoramic views overlooking the Durban beachfront promenade and refreshing views of the ocean and all rooms are air-conditioned. The convenient location and variety of rooms makes Beach Hotel the ideal choice for a family holiday or business trip. 4. TERMS AND CONDITIONS OF THE DISPOSAL 4.1 Gooderson accepted an offer to sell the business and assets of the Beach Hotel to Motsa Properties CC represented by Moses Boy Motsa. 4.2 The selling price is R20 million and occupation date is 1 July 2012, subject to the signing of a legal agreement. 4.3 The sales proceeds will be used inter alia to settle certain liabilities. 5. UNAUDITED PRO FORMA FINANCIAL EFFECTS OF THE DISPOSAL The unaudited pro forma financial effects set out below are provided for illustrative purposes only to provide information about how the disposal may have impacted on Gooderson`s results and financial position. The pro forma financial effects have been prepared in accordance with International Financial Reporting Standards. Due to the nature of the unaudited pro forma financial information, it may not give a fair presentation of the company`s results and financial position after the disposal. The unaudited pro forma financial effects are based on the unaudited financial information of Gooderson for the six ended 31 August 2011. The directors of Gooderson are responsible for the preparation of the unaudited pro forma financial effects. Before the Pro forma Change
disposal After the unaudited disposal 31 August unaudited 2011 31 August
2011 Earnings per share (cents) 0.75 12.96 100% Headline earnings per share 0.73 0.89 21.92% (cents) Net asset value per share (cents) 117.68 129.75 10.25% Net tangible asset value per 116.85 128.92 10.33% share (cents) Weighted average shares in issue 120 000 000 120 000 000 Number of shares in issue at 120 000 000 120 000 000 period end
Notes: (1) For the purpose of calculating the earnings and headline earnings per share, it is assumed that the disposal was implemented on 1 March 2011 and for the purpose of calculating the net asset value and the net tangible asset value per share, it is assumed that the disposal was implemented on 31 August 2011. (2) The "Before the disposal" column has been extracted without adjustment, from the interim results of Gooderson for the six months ended 31 August 2011. (3) The "After the disposal" earnings per share includes a profit on the disposal of R14.48 million. This profit has been deducted for the calculation of headline earnings per share. The "After the disposal" earnings per share and headline earnings per share have been adjusted to exclude the share of income and expenses of the Beach Hotel. (4) The "After the disposal" net asset value and net tangible asset value per share have been adjusted to exclude the assets of the Beach Hotel. 6 CATEGORISATION OF THE DISPOSAL The disposal is categorised, in terms of the JSE Limited`s Listings Requirements, as a Category 2 transaction and does not require shareholders` approval. 7. RENEWAL OF CAUTIONARY ANNOUNCEMENT Further to the cautionary announcement dated 22 March 2012, shareholders are advised to continue exercising caution when dealing in the company`s securities until a legal agreement is signed between the purchaser and the seller. 8. FURTHER ANNOUNCEMENT Shareholders will be notified once a formal agreement has been signed. 28 March 2012 Durban Designated Adviser Exchange Sponsors Date: 28/03/2012 11:48:01 Supplied by www.sharenet.co.za 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.
