Category 2 Disposal Announcement
DENEB INVESTMENTS LIMITED
Registration number: 2013/091290/06
(Incorporated in the Republic of South Africa)
JSE share code: DNB
(“Deneb” or the “Company”)
CATEGORY 2 DISPOSAL ANNOUNCEMENT
Shareholders are advised that the Company, through its wholly-owned subsidiary, Sargas
Proprietary Limited has entered into an agreement (“Agreement”) with The Lansdowne
Trust (IT479/03) (“Purchaser”), in terms of which the Company will dispose of the
industrial properties situated at (i) Erf 3812 Mobeni Registration Division FT Province of
Kwazulu Natal, in extent, 1,9486 hectares and (ii) Erf 485 Mobeni Registration Division
FT Province of Kwazulu Natal, in extent, 4 222 square meters, in Nottingham Road,
Mobeni, KwaZulu Natal together with existing lease, to the Purchaser, as a going concern,
for a disposal consideration of R55 000 000 (“Disposal Consideration”) (“Disposal”).
2. RATIONALE FOR THE DISPOSAL
The Properties are no longer required by the Company or any of its subsidiaries
(“Group”), as the Group no longer conducts the manufacturing operations at the
3. DISPOSAL CONSIDERATION
The Disposal Consideration of R55 000 000 will be paid in cash by the Purchaser on the
Transfer Date (as defined below).
4. APPLICATION OF THE DISPOSAL CONSIDERATION
The Disposal Consideration will be used to settle outstanding debt.
5. CONDITIONS PRECEDENT
There are no outstanding conditions precedent to the Disposal.
6. EFFECTIVE DATE OF THE DISPOSAL
The effective date of the Disposal will be the date of registration of transfer of the
Properties into the name of the Purchaser (“Transfer Date”), which is anticipated as being
on or about 30 September 2021.
7. WARRANTIES AND OTHER SIGNIFICANT TERMS OF THE AGREEMENT
The Agreement contains warranties, representations and undertakings by the Company
in favour of the Purchaser and by the Purchaser in favour of the Company, which are
standard for a transaction of this nature.
The Properties are sold “voetstoots”.
8. FINANCIAL INFORMATION
The value of the net assets comprising the Properties as at 31 March 2021, being the
date of the last reviewed condensed consolidated financial results, was R54 900 000.
The profits after tax attributable to the Properties for the year ended 31 March 2021, was
R5 002 411, based on the management accounts of the property division of Sargas
Proprietary Limited for the year ended 31 March 2021 (“the management accounts”).
The Company is satisfied with the quality of the management accounts; however,
shareholders are cautioned that they are unaudited.
9. CLASSIFICATION OF THE DISPOSAL
The Disposal constitutes a category 2 transaction in terms of the JSE Limited Listings
2 June 2021
Sponsor and Corporate Advisor
Date: 02-06-2021 05:10:00
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