CITY LODGE HOTELS LIMITED - Financial assistance in terms of Section 45(5) of the Companies Act

Financial assistance in terms of Section 45(5) of the Companies Act

City Lodge Hotels Limited
"City Lodge" or “the Company”
(Reg. No. 1986/002864/06)
(Incorporated in the Republic of South Africa)
Share Code: CLH    ISIN Code: ZAE000117792

NOTICE IN TERMS OF SECTION 45(5) OF THE COMPANIES ACT, 71
OF 2008, AS AMENDED (“THE ACT”)

In accordance with the provisions of section 45(5) of the
Act, and pursuant to the special resolution passed at the
annual  general meeting   of      the    Company  held  on
12 November 2015 authorising      the   Company to provide
financial assistance to related and inter-related parties,
notice is hereby given that the Board has adopted a
resolution authorising the Company to enter into a Loan
Agreement with its wholly owned subsidiary, City Lodge
Hotels (Africa) Proprietary Limited, in terms of which the
Company will provide a loan facility of an amount of up to
R6,000,000.00 (six million Rand) for purposes of achieving
the Company’s expansion initiatives.


The Board is satisfied that:
i. immediately after providing such financial assistance,
    the Company would have satisfied the solvency and
    liquidity test as provided for in section 4 of the Act;
    and
ii. the terms under which such financial assistance would
    be given are fair and reasonable to the Company; and
that any conditions or restrictions relating to the
granting of such financial assistance contained in the
Company’s memorandum of incorporation have been satisfied.

Bryanston
29 July 2016

Sponsor
JP Morgan Equities South Africa Proprietary Limited

Date: 29/07/2016 05:18:00 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.