THE DON GROUP LIMITED - Disposal of hotel properties and renewal of cautionary announcement

Disposal of hotel properties and renewal of cautionary announcement

The Don Group Limited
Incorporated in the Republic of South Africa
(Registration number: 1946/023123/06)
Share Code: DON ISIN: ZAE000008462
(“The Don” or “the Company”)


DISPOSAL OF HOTEL PROPERTIES AND RENEWAL OF CAUTIONARY ANNOUNCEMENT



1. INTRODUCTION
  Shareholders are referred to the renewal of cautionary announcement dated 15 November 2012 and are
  hereby advised that the Board of directors of The Don (“the Board”) is pleased to inform shareholders
  that The Don, through its wholly-owned subsidiaries, Granport Investments Proprietary Limited
  (“Granport”) and Fluxrab Investments 44 Proprietary Limited (“Fluxrab”) has, as detailed below, entered
  into agreement to dispose of its remaining five hotel properties, being the properties situated at 10
  Tyrwhitt Avenue, Rosebank, Johannesburg (“Rosebank Property”), 6 Electron Avenue, Isando,
  Johannesburg (“Isando Property”), 672 Schoeman Street, Arcadia, Pretoria (“Arcadia 1 Property”), 220
  Queen Street, Bruma, Johannesburg (“Eastgate Property”) and 599 Pretorius Street, Arcadia, Pretoria
  (“Arcadia 2 Property”) for a total purchase consideration of R120.5 million (“the Disposals”), which
  Disposals constitute a proposal to dispose of all or the greater part of The Don’s assets in terms of
  section 112 of the Companies Act, 2008 (Act 71 of 2008), as amended (“Companies Act”). The
  conditions precedent to the Disposals are, the obtaining of all necessary regulatory approvals and
  approval by shareholders of The Don in general meeting.

2. THE DISPOSAL OF THE ROSEBANK PROPERTY
  The Board is pleased to inform shareholders that Granport has entered into an Agreement of Sale dated
  14 November 2012 (“the Rosebank Property Agreement”) with Calaska Trading 35 Proprietary Limited
  (“Calaska”) to dispose of the Rosebank Property, together with all the buildings and improvements
  thereon, including fittings and fixtures to Calaska for a purchase consideration of R36.0 million.

3. THE DISPOSAL OF THE ISANDO PROPERTY
  The Board is pleased to inform shareholders that Fluxrab has entered into an Agreement of Sale dated
  14 November 2012 (“the Isando Property Agreement”) with Magnacorp 398 Proprietary Limited
  (“Magnacorp”) to dispose of the Isando Property, together with all fixtures and fittings of a permanent
  nature to Magnacorp for a purchase consideration of R24.5 million.
4. THE DISPOSAL OF THE ARCADIA 1 PROPERTY
  The Board is pleased to inform shareholders that Granport has entered into an Agreement of Sale dated
  14 November 2012 (“the Arcadia 1 Property Agreement”) with Sentinel Executive Suites CC (“Sentinel”)
  to dispose of the Arcadia 1 Property, together with all improvements thereon to Sentinel for a purchase
  consideration of R21.0 million.
5. THE DISPOSAL OF THE EASTGATE PROPERTY
  The Board is pleased to inform shareholders that Granport has entered into a Deed of Sale Agreement
  dated 14 November 2012 (“the Eastgate Property Agreement”) with Mr Mohamed Carim or his nominee
  (“Carim”) to dispose of the Eastgate Property, together with all improvements thereon, to Carim for a
  purchase consideration of R20.0 million.
6. THE DISPOSAL OF THE ARCADIA 2 PROPERTY
  The Board is pleased to inform shareholders that the Granport has entered into an Agreement of Sale
  dated 14 November 2012 (“the Arcadia 2 Property Agreement”) with Calaska to dispose of the Arcadia 2
  Property – together with all the buildings and improvements thereon, including fittings and fixtures to
  Calaska for a purchase consideration of R19.0 million.

7. RENEWAL OF CAUTIONARY ANNOUNCEMENT
   Shareholders are advised to exercise caution when dealing in The Don’s securities until a further
   announcement, providing full details of the Disposals, is made. Such announcement is expected to be
   made within the week.
Johannesburg
20 November 2012

Sponsor
Merchantec Capital

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