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eXtract GROUP LIMITED - Disposal of properties

Release Date: 09/06/2017 16:45
Code(s): EXG     PDF:  
Wrap Text
Disposal of properties

EXTRACT GROUP LIMITED
(previously Eqstra Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1998/011672/06)
JSE share code: EXG       ISIN: ZAE000223202
(“eXtract” or “the Company”)


DISPOSAL OF PROPERTIES


1.    INTRODUCTION

      eXtract shareholders are advised that MCC Contracts Proprietary Limited (“MCC”), a wholly-owned
      subsidiary of eXtract, has reach agreement to dispose of the immovable properties situate at 60 Rodio
      Place, Midrand Industrial Park, Gauteng to Sandton Plant Hire East Proprietary Limited (“Sandton
      Plant”) for an aggregate consideration of R52 million (the “Sandton Plant transaction”).

2.    RATIONALE

      The Sandton Plant transaction forms part of eXtract’s strategy to dispose of all excess assets, as more
      fully detailed in the announcement released on SENS on 18 April 2017. The proceeds of the Sandton
      Plant transaction will be used to repay a portion of eXtract’s South African bank debt.

3.    TERMS OF THE SANDTON PLANT TRANSACTION

      Sandton Plant has entered into two agreements with MCC to acquire the immovable properties situate
      at 60 Rodio Place, Midrand Industrial Park, Gauteng together with all furniture and equipment situated
      at the immovable properties, for an aggregate consideration of R52 million (the “purchase price”)
      with effect from the date of registration of transfer of the immovable properties into Sandton Plant’s
      name (the “transfer date”).

      The purchase price is payable in cash on the transfer date.

      The Sandton Plant transaction remains conditional upon eXtract shareholder approval.

      eXtract shall remain in occupation of a portion of property for two years from the transfer date for a
      nominal rental and shall be liable for all expenses directly related to its use thereof.

      The agreements in respect of the Sandton Plant transaction contain undertakings, warranties and
      indemnities which are normal for a transaction of this nature.

4.    CATEGORISATION OF THE SANDTON PLANT TRANSACTION

      The Sandton Plant transaction is categorised as a category 1 transaction in terms of the JSE Listings
      Requirements for eXtract and accordingly requires shareholder approval. The Sandton Plant transaction forms
      part of the excess asset disposal, which is classified as a category 1 transaction in terms of the JSE Listings
      Requirements. A circular detailing the terms of the excess asset disposal, including the disposal, and
      incorporating a notice convening a general meeting of eXtract shareholders will be posted to eXtract
      shareholders in due course.

5.    FINANCIAL INFORMATION AND FURTHER CAUTIONARY

      Shareholders are advised that a further announcement setting out the financial information pertaining to the
      excess asset disposal, including the disposal, will be released on SENS in due course.

      Shareholders are advised to continue to exercise caution when dealing in the securities of eXtract until such
      further announcements are made.

9 June 2017


Sponsor
Java Capital
Date: 09/06/2017 04:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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