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ONELOGIX GROUP LIMITED - Acquisition of land for development of a premises in Kwa-Zulu Natal

Release Date: 25/06/2014 16:43
Code(s): OLG     PDF:  
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Acquisition of land for development of a premises in Kwa-Zulu Natal

ONELOGIX GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/004519/06)
JSE share code: OLG ISIN: ZAE000026399
(“OneLogix” or “the company”)


ACQUISTION OF LAND FOR DEVELOPMENT OF A PREMISES IN KWA-ZULU NATAL


1.    INTRODUCTION

      OneLogix (“the purchaser”) has concluded an agreement with Afroprop Natal Proprietary Limited
      (“the seller”) for the acquisition (“the acquisition”) of portion 855 (of 844) of the farm Vaalkop and
      Dadelfontein no. 885 (“the land”) for a purchase price of R69 161 000 (“purchase price”). The seller
      is the beneficial owner of the land.

2.    RATIONALE FOR THE ACQUISITION

      OneLogix has been investigating suitable new premises for Vehicle Delivery Services Proprietary
      Limited (“VDS”), a division of OneLogix Proprietary Limited, in the Durban area. The land is a large
      tract of land between Durban and Pietermaritzburg that OneLogix plans to develop into a major
      vehicle storage facility for VDS, together with further facilities for general group usage, such as a
      large workshop, fuel tanks and truck parking areas for various group subsidiaries (“the
      development”).

3.    DETAILS OF THE LAND AND THE DEVELOPMENT

      3.1.   The land is situated in KwaZulu-Natal and comprises 14.2941 hectares.

      3.2.   The development is expected to cost approximately R52 400 000 (“development cost”) and
             transfer of the completed development is expected to be mid-December 2014.

4.    TERMS OF THE ACQUISITION

      4.1.   The purchase price is payable by the purchaser to the seller on the date of registration of
             transfer of the land to the purchaser (the “transfer date”).

      4.2.   Payment of the purchase price must be secured by the purchaser in full by a bank guarantee,
             expressed as payable in Durban, which guarantee shall be lodged with Garlicke & Bousfield
             Incorporated no less than 30 days prior to the anticipated transfer date.

      4.3.   OneLogix has received in principle approval from a financial institution for debt funding for the
             acquisition and the development on a loan-to-value basis of 70%. The balance of the purchase
             price for the land and the development cost of approximately R36 500 000 will be funded
             through existing cash resources and short-term facilities.

      4.4.   The agreement provides for warranties and indemnities that are normal for an acquisition of this
             nature.

5     CONDITIONS PRECEDENT

      5.1    The acquisition is subject to the fulfilment or waiver, as the case may be, of the following
             suspensive conditions:

            5.1.1   prior to 16h00 on 1 August 2014 the seller being in a position to transfer the land to the
                    purchaser subject to the terms and conditions set out in the agreement; and

            5.1.2   prior to 16h00 on 1 August 2014 the seller procuring that the land is zoned and/or is the
                    subject of special consent approval so as to enable the purchaser to undertake the
                    storage of motor vehicles and ancillary business activities thereon.

      5.2   The seller and the purchaser may by mutual written agreement extend the date for the fulfilment
            of any one of the suspensive conditions.

5     CATEGORISATION OF THE ACQUISITION

      The acquisition constitutes a category 2 transaction in terms of the JSE Listings Requirements and
      accordingly does not require approval by OneLogix shareholders.

6     PRO FORMA FINANCIAL EFFECTS

      The unaudited pro forma financial effects of the acquisition on OneLogix’s basic and diluted basic
      earnings per share, headline and diluted headline earnings per share, net asset value and net tangible
      asset value per share, based on OneLogix’s unaudited condensed consolidated interim results for the
      six months ended 30 November 2013, are not significant and are accordingly not presented.

25 June 2014


Corporate advisor and sponsor
Java Capital



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