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VISUAL INTERNATIONAL HOLDINGS LIMITED - Announcement regarding the disposal of land known as Stellendale 3

Release Date: 02/08/2016 17:46
Code(s): VIS     PDF:  
Wrap Text
Announcement regarding the disposal of land known as Stellendale 3

VISUAL INTERNATIONAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2006/030975/06)
(“the Company” or “Visual”)
ISIN Code: ZAE000187407       Share code: VIS


ANNOUNCEMENT REGARDING THE DISPOSAL OF LAND KNOWN AS STELLENDALE 3


Introduction
Shareholders are referred to the status update and renewal of cautionary announcement issued on
SENS on 28 June 2016 and are advised that an agreement has been signed between Visual
International Proprietary Limited (“Visual International”) and Uvest Housing Portfolio 2 (RF) Proprietary
Limited (“the purchaser” or “Uvest”), which agreement provides for the disposal of a property known
as Stellendale 3 (“the Property”).

Details of the Property and Rationale for Disposal
The Property comprises the following:

-    Erf 18358 Kuils River, measuring 3,2107 hectares over which General Plan SG No. 2366/2008 has
     been approved and will be registered by the Seller, known as Steenberg; and
-    Remainder Farm 1286, comprising:
     -     Portion “A”, measuring approximately 3,1089 (three comma one zero eight nine)
           hectares, known as Tokai, representing 83 residential erven opportunities; and
     -     Portion “B”, measuring approximately 2,4380 (two comma four three eight zero)
           hectares, known as Constantia, representing 83 residential erven opportunities;

The conclusion of this agreement will ensure that Visual is mostly debt free, enabling it to commence
with its main business as a property developer and serve to fast track the achievement by Visual of
its strategic objective to develop the remainder of the Stellendale township.

Terms of the Disposal
Consideration and effective date:
The disposal consideration is R15 million, exclusive of VAT, which amount will be settled in cash on the
date of registration of the Property into the name of the purchaser. The effective date will be the
date of transfer of the Property.

Condition precedent:
The agreement is subject to a due diligence on the Property, and to board approval by the Purchaser
following the due diligence process, by no later than 31 August 2016.

Other significant terms:
There are no other significant terms in the agreement.

Financial information
The property was acquired on 18 October 2013 for R17 000 000, excluding VAT and is carried in the
company’s books at R17 000 000 as at 31 August 2015 as well as a bond of approximately R4.7 million.
The property has been recently independently valued on 29 February 2016 by Adval, an
independent registered valuer, at R17 000 000. A covering bond is also registered against the
property. The sale consideration of R15 000 000 will result in a loss of R2 000 000 based on the last
published results as at 31 August 2015. The Purchaser is liable for the agent’s commission.

The proceeds will be applied towards the repayment of the R4.7 million bond, reduction of the
balance of most of the secured debt in the Visual group and for working capital and development 
purposes.

Categorisation
The proposed disposal is a Category 2 transaction in terms of the Johannesburg Stock Exchange
Listings Requirements for AltX listed companies and shareholder approval is accordingly not required.
The Purchaser is not a related party to Visual.

Renewal of cautionary announcement
Shareholders are referred to the previously published update announcement and are advised that
the company continues in negotiations with other parties on various transactions. A separate update
announcement will be issued in due course.

Shareholders are accordingly advised to continue to exercise caution when dealing in their shares.

Johannesburg
2 August 2016

Designated Advisor
Arbor Capital Sponsors Proprietary Limited

Date: 02/08/2016 05:46:00 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
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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,
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