ELB - disposal announcement
The board of directors of ELB ("the Board") announces that, through its subsidiaries ELB Engineering (Pty) Ltd. ("Engineering") and ELB Engineering Services (Pty) Ltd. ("Engineering Services"), the Company, on 11 July 2019, agreed to dispose of its interest in the ELB Flying Services Partnership ("Partnership"), to be effected through:
a) the disposal by Engineering Services of its 49% interest in the Partnership ("Partnership Interest") to Mr AG Fletcher, or his nominee; and
b) the disposal by Engineering of 100% of the issued share capital of ELB Trident Equipment (Pty) Ltd. ("Trident") and related claims ("Trident Shares and Claims") to Tanjo Financial Services (Pty) Ltd. ("Tanjo"), (collectively, "the Transaction").
Tanjo is a company controlled by Mr AG Fletcher, the current Chairman of the Board. Trident holds a 2% interest in the Partnership and has no other business activities.
The Partnership is established for the sole and exclusive purpose and object of acquiring, owning, managing and leasing an aircraft and in the course of the Partnership business to generate rental and other income for the benefit of the Partners and to carry out all such other activities as may be necessary or desirable in relation to the aircraft and from the successful operation of the Partnership.
ELB has entered into the Transaction to provide additional working capital.
The consideration payable to Engineering Services for its 49% interest in the Partnership is an amount of R8 232 000, payable in cash. The consideration payable to Engineering for the Trident Shares and Claims is an amount of R336 000, payable in cash. The total aggregated cash consideration for the Transaction is R8 568 000.
There are no material conditions precedent outstanding.
The effective date of the transaction is 30 June 2019 ("Effective Date").