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

STEFANUTTI STOCKS HOLDINGS LIMITED - Disposal of properties

Release Date: 08/10/2019 17:10
Code(s): SSK     PDF:  
Wrap Text
Disposal of properties

     Stefanutti Stocks Holdings Limited
     (Incorporated in the Republic of South Africa)
     (Registration number 1996/003767/06)
     Share code: SSK             ISIN: ZAE000123766
     (“Stefanutti Stocks” or “the Group”)

     DISPOSAL OF PROPERTIES (“the Transaction”)

1.   INTRODUCTION

     Shareholders are advised in terms of Section 9 of the JSE Limited Listings Requirements, that Stefanutti Stocks
     (“the Seller”) has entered into an agreement (“the Agreement”) dated 3 July 2019 with Overrox 70 CC
     (“Overrox” or “the Purchaser”) to dispose of 2 (two) adjacent properties being number 12 Circuit Road,
     Westmead, Pinetown and number 14 Circuit Road Westmead, Pinetown (“the Properties”).

2.   THE PURCHASER

     The Properties have been purchased by Overrox Trading 70 CC, registration number 2011/012144/23 for a
     purchase consideration of R26 795 000 (Twenty-six million seven hundred and ninety-five thousand Rand)
     including VAT at 15% (Fifteen per centum), that is R23 300 000 (Twenty three million three hundred thousand
     Rand) with VAT in an amount of R3 495 000 (Three million four hundred and ninety five thousand Rand)
     (“the Purchase Consideration”).

3.   EFFECTIVE DATE AND CONDITIONS PRECEDENT

     The suspensive conditions to the Agreement had been fulfilled on 13 August 2019. The Transaction will become
     effective on transfer of the Properties into the name of the Purchaser.

4.   BACKGROUND AND RATIONALE FOR THE TRANSACTION

     Stefanutti Stocks has owned the Properties since the 1990's. During 2010 the Properties were transferred from
     divisional companies into one operating company. Stefanutti Stocks Building KZN and Stefanutti Stocks Coastal
     currently occupy these Properties and use them as a large plant workshop and administrative offices. The
     Properties however do not meet the Stefanutti Stocks KZN’s operational requirements.
     It is Stefanutti Stocks intention to have one property, large enough to house both the administrative offices,
     workshop and plant and formwork facilities.

5.   NET ASSETS & ATTRIBUTABLE PROFITS

     As set out in the Annual Financial Statements of the Group for the year ended 28 February 2019, based on most
     recent valuations, the Properties are valued at R20,179,020. The Transaction will result in a profit of R2,820,980
     after incurring costs to sell the Properties of R300,000.
6.   CONSIDERATION

     Overrox will pay Stefanutti Stocks the Purchase Consideration by payment of a deposit of in the amount
     equivalent to 10% (ten per centum) of the Purchase Consideration excluding VAT, that amount being
     R2 330 000 (Two million three hundred and thirty thousand Rand) on or before 19 July 2019. The balance of
     the Purchase Consideration will be paid on registration of transfer of the Properties.

7.   APPLICATION OF PROCEEDS

     Stefanutti Stocks will use the proceeds of the disposal to fund Group working capital requirements.

8.   THE DISPOSAL OF PROPERTIES

     Securities did not form part of the Purchase Consideration received.

9.   CATEGORISATION OF THE TRANSACTION

     For purposes of categorisation, the Transaction constituted a Category 2 transaction in terms of the Listings
     Requirements of the JSE Limited and accordingly does not require shareholder approval.

     Johannesburg
     8 October 2019
     Sponsor: Bridge Capital Advisors Proprietary Limited
     Legal Advisor to Stefanutti Stocks for this Transaction: Macgregor Erasmus Attorneys

Date: 08/10/2019 05:10:00
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