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MZR - Mazor Group Limited - Mazor Acquires Property for the operations of

Release Date: 04/04/2012 13:50
Code(s): MZR
Wrap Text

MZR - Mazor Group Limited - Mazor Acquires Property for the operations of Compass Glass SA (Proprietary) Limited in Johannesburg Mazor Group Limited Incorporated in the Republic of South Africa Registration number: 2007/017221/06 Share Code: MZR ISIN: ZAE000109823 ("Mazor" or "the Company") MAZOR ACQUIRES PROPERTY FOR THE OPERATIONS OF COMPASS GLASS SA (PROPRIETARY) LIMITED ("COMPASS GLASS") IN JOHANNESBURG 1. INTRODUCTION K2011134295 (South Africa) (Proprietary) Limited (`the purchaser"), a wholly owned subsidiary of Mazor, entered into an agreement with Beaux Lane (S.A.) Properties (Proprietary) Limited ("Beaux Lane" or "the seller") to acquire a property located at Erf 234 Alrode Extension 2 Township, Johannesburg for a total purchase price of R14 706 000 including VAT ("the purchase price") payable upon transfer of the property into the name of the purchaser ("the acquisition"). 2. NATURE OF THE PROPERTY Compass Glass has been operating from the property for 4 years. The property measures 13 156 square meters and includes two separate, freestanding warehouses, each of which has an office component. The property will continue to be utilised by Compass Glass operations in Johannesburg. 3. EFFECTIVE DATE The effective date of the acquisition is the date on which the property is transferred into the name of the purchaser. 4. CONDITIONS PRECEDENT The acquisition is subject, inter alia, to the following conditions precedent: * The seller obtains the necessary investment committee approvals with 7 days of the signature of the agreement; and * The purchaser obtains the necessary board committee approvals for the acquisition with 7 days of the signature of the agreement. 5. SETTLEMENT OF THE ACQUISITION The acquisition will be settled in the following way: * the purchaser shall pay a deposit of R645 000 out of cash reserves toward the payment of the purchase price within 14 days of fulfilment of the conditions precedent; and * for the balance of the purchase price, the purchaser shall issue to the seller, within than 21 days from the fulfilment of the conditions precedent, an unconditional and irrevocable bank guarantee. 6. PRO FORMA FINANCIAL EFFECTS The pro forma financial effects of the acquisition on Mazor`s earnings, headline earnings, net asset value and net tangible asset value per share are less than 3% and, therefore, have not been presented. 7. RATIONALE FOR THE ACQUISITION The acquisition will facilitate further expansion of the Compass Glass operations in Johannesburg with the addition of further processing, stocking and warehouse facilities. 8. FUNDING OF THE ACQUISITION The acquisition will be funded by way of a mortgage bond over the property, the terms of which are to still be finalised. 9. TRANSACTION CLASSIFICATION The transaction is classified as a category 2 transaction in terms of the JSE Limited Listings Requirements. Cape Town 4 April 2012 Sponsor: Bridge Capital Advisors (Proprietary) Limited Date: 04/04/2012 13:50:37 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.

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