BONATLA PROPERTY HOLDINGS LIMITED - Voluntary update announcement in relation to the suspension of trade in the company's securities

Voluntary update announcement in relation to the suspension of trade in the company's securities

BONATLA PROPERTY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1996/014533/06)
 Share code: BNT
 ISIN code: ZAE000013694
 (“Bonatla” or “the Company”)


 VOLUNTARY UPDATE ANNOUNCEMENT IN RELATION TO THE SUSPENSION OF
               TRADE IN THE COMPANY’S SECURITIES


In accordance with paragraph 1.6 of the JSE Listings Requirements
which deals with the suspension of a Company’s securities by the
JSE Limited (“JSE”), shareholders are advised that it has met
with the JSE Investigations Department with a view to resolving
any outstanding queries that the JSE may have in order to allow
the JSE to lift the suspension of trading in the Company’s
securities.

The Company was advised that it is primarily required to resolve
certain outstanding matters in relation to unresolved queries
that arose pursuant to the referral of certain IFRS accounting
matters to the GAAP Monitoring Panel (now known as the Financial
Reporting Investigations Panel (“FRIP”)) on the unqualified
annual financial statements for the year ended 31 December 2009.
The Company was unaware that certain matters remained outstanding
but has committed to resolve any outstanding matters as speedily
as possible, with assistance from its auditors and IFRS advisor.

Shareholders are advised that the finalisation of this matter to
the satisfaction of FRIP and the JSE may result in the
restatement of the Annual Financial Statements for the year ended
31 December 2009. In addition, in the event that the unqualified
annual financial statements for the year ended 31 December 2009
require restatement, the Company has undertaken to review any
further impact of such accounting changes on the unqualified
annual financial statements for the years ended 31 December 2010
and 31 December 2011. The Company’s unqualified annual financial
statements for the years ended 31 December 2010 and 31 December
2011 will naturally be subject to review by FRIP, given the
historical situation.

In addition to the above mentioned FRIP issue, the JSE has raised
two other issues:
-   the acquisition of the Bluezone portfolio which acquisition
    has been beneficially completed yet shareholder approval
    remains outstanding; and
-   the transfer of the bulk for the Durban Point Development
    Corporation (“DPDC”) as detailed in the circulars to
    shareholders   dated  11   April  2009   and  27   July 2009
    respectively (“the two circulars”), which was part of a
    number of acquisitions that constituted a reverse listing
    based on which the original suspension was lifted on 17
    August 2009, has been delayed due to litigation and
    Environmental Impact Assessment objections with regard to the
    development of a small craft harbour at the Durban Waterfront
    and the high water mark.

With regard to the Bluezone acquisition, as previously announced
over the past couple of years, the transaction was substantially
delayed due to the Bluezone liquidation, judicial management
processes as well as the s311 Court processes.       Bonatla has
acquired the beneficial interest in the Bluezone portfolio and
has consolidated the results of Bluezone over the past two years
in accordance with IFRS.       The acquisition of the Bluezone
portfolio has taken place through a court process. A circular to
shareholders (“the Circular”) has been submitted to the JSE
earlier in the year but the JSE has advised that it requires the
FRIP issues to be resolved before it will provide further
comments on the Circular. It is the Company’s understanding that
the completion of the Circular in due course and subsequent
shareholder approval will resolve this matter from a JSE
position.    It should be noted that irrevocable undertakings
exceeding 70% have been obtained to vote in favour of the
Bluezone acquisition and related transactions detailed in the
said circular.     Thus shareholder ratification should be a
formality.

Although the DPDC acquisition remains outside of the control of
Bonatla due to the various legal processes the Company has
received the benefit of the three year rental guarantee as
detailed in the two circulars.    Shareholders are advised that
payment for the bulk through the issue of preference shares has
not occurred.

It is the Company’s belief that, once the FRIP issues are
resolved, the resolution of the balance of the issues will flow
and the JSE will then be able to assess the status of the listing
with regard to the impact of the above and the Company will be
able to proceed with the Circular to shareholders.

The Company aims to work with the JSE to resolve any and all
outstanding issues as timeously as possible.

Johannesburg
14 November 2012

Sponsor
Arcay Moela Sponsors (Proprietary) Limited

Date: 14/11/2012 02:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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