To view the PDF file, sign up for a MySharenet subscription.

MARSHALL MONTEAGLE PLC - Disposal by Marshal off six investment properties

Release Date: 01/09/2015 15:04
Code(s): MMP     PDF:  
Wrap Text
Disposal by Marshal off six investment properties

Marshall Monteagle PLC
(Incorporated in Jersey and registered as
an external company in South Africa)
Company registration number: 102785
External registration number: 2010/024031/10
JSE share code: MMP
ISIN: JE00B5N88T08
(“Marshall”)


DISPOSAL BY MARSHALL OF SIX INVESTMENT PROPERTIES

1. Introduction and terms

Shareholders are advised that Marshall has entered into a sale agreement with
Rivertown Central Proprietary Limited (“Rivertown”) in terms of which Marshalls
Group Limited, a wholly owned subsidiary of Marshall, will dispose of six
investment properties and the rental enterprises conducted thereon as defined in
paragraph 2 below, voetstoots and as a going concern, for a consideration of
US$ 7 518 800 (ZAR100 000 000) (“the Disposal”).


2. Description of investment properties and rental enterprises

   The subject matter of the Disposal is the following properties in Durban, Kwa-
   Zulu Natal:

   2.1       the properties held under Deed of Transfer No T 4153/1990 and
             situate at 63 Prince Alfred Street/Stanger Street, Durban;

   2.2       the properties held under Deed of Transfer No T 10246/1991 and
             situate at 67 Prince Alfred Street/Stanger Street, Durban;

   2.3       the properties held under Deed of Transfer No T 10246/1991 and
             situate at 71/75 Prince Alfred Street/Stanger Street, Durban;

   2.4       the properties held under Deed of Transfer No T 12038/1955 and
             situate at 62/68 Prince Alfred Street, Durban;

   2.5       the properties held under Deed of Transfer No T 4152/1990 and
             situate at 72 Prince Alfred Street (Corner Hunter Street), Durban;
             and
    2.6      the properties held under Deed of Transfer No T 7150/1990 and
             block bounded by 81 – 91 Prince Alfred Street and 78 – 86 Hunter
             Street, Stanger and Morrison Street, Durban,

   and the rental enterprises currently conducted thereon by Marshall
   (collectively the “Investment Properties”).


3. Rationale for the disposal

Marshall is an investment holding company, with portfolios of leading
investments in the United Kingdom, Europe, United States and the Far East and
commercial properties in the United States and South Africa. Marshall also has
import and distribution businesses internationally and interests in food processing
and logistics in South Africa.

The Investment Properties are located in an area of Durban that is currently
subject to development and change. The Disposal presents an opportunity to
realise a satisfactory return on the investment, as Marshall is not active in
property development.


4. Effective date of the disposal

The effective date of the Disposal is the date of transfer of the Investment
Properties and is expected to be 28 February 2016 (“the Effective Date”).

5. Conditions precedent

The Disposal is subject to the fulfillment of, inter alia, the following outstanding
conditions precedent, on or before 30 September 2015 or such later date as may
be agreed between the parties in writing, that Rivertown notifies Marshall in
writing that:-

    5.1      it is satisfied with the outcome of its due diligence investigation of
             the Investment Properties;
    5.2      it has obtained written confirmation from Rivertown’s attorneys that
             the Competition Commission has unconditionally approved the
             Disposal in terms of the Competition Act No. 89 of 1989, or that
             Competition Commission approval of this Disposal is not required;
             and
    5.3      it has obtained written confirmation that a bank guarantee, from a
             recognised bank in favour of Marshall and on terms and conditions
             acceptable to Marshall, shall be delivered to the conveyancing
             attorneys on or before 30 October 2015.
6. Settlement of the consideration

The consideration of US$ 7 518 800 (ZAR100 000 000) will be settled in cash on
the Effective Date and the estimated proceeds of US$5 307 340
(ZAR70 587 625) will be remitted to Marshall after deduction of costs and taxes
of approximately US$2 211 460 (ZAR29 412 375). These proceeds will be
utilised to further Marshall’s long-term investment objectives.

7. Profits and net asset value attributable to the Investment Properties

The post-tax profits attributable to the Investment Properties for the year ended
30 September 2014 (being the most recent financial year end) was US$510 241
(ZAR5 427 332) while the net asset value of the Investment Properties as at 30
September 2014 was US$5 160 068 (ZAR58 300 000).

8. Categorisation of the acquisition

Rivertown is not a related party to Marshall and the Disposal is categorised as a
Category 2 transaction in terms of the JSE Limited Listings Requirements.



Johannesburg
1 September 2015

Sponsor: Sasfin Capital
(A division of Sasfin Bank Limited)

Date: 01/09/2015 03:04:00 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.

Share This Story