South African property group Bonatla (BNT) confirmed on Thursday that it will acquire Malaysian company Renong Overseas Corporation's stake in Durban Point Development Company (Pty) Limited for an aggregate consideration of 150 million rand. Renong reportedly owns about 50% of Durban Point Development Company.
Trading in Bonatla's shares on the JSE was suspended on Tuesday after news of the deal leaked out in the media.
The deal is one of several transactions announced by Bonatla on Thursday. Bonatla said that in addition to the purchase price for Renong's stake in Durban Point Development Company, various commissions and expenses related to the acquisition of Durban Point totalling R39m will be settled by the issue of 39 million Bonatla shares at one rand each.
"Part of the R39m raised has been earmarked for the introduction of certain broad-based BEE groups into Bonatla, and a further R11m in itional Bonatla shares will be issued to further KwaZulu-Natal based BEE groups," it stated.
The group announced that it had also entered into agreements to purchase some other properties in Durban referred to as Bay Terrace Views from VLC Commercial and Industrial Properties for R17.5m, as well as a portfolio of properties in Mpumalanga from Laeveldtrust 2001 (EDMS) BPK for R73.436m.
Bonatla is also busy buying all the property owned by Golden Pond Trading in Shelley Beach for R65m; some property in Mkondeni for R6m; property in the Pinetown area for R11.2m; and property in Edenburg for R6m.
The group has also entered into an agreement to acquire actuarial
company Risklab for R15m.
"Pursuant to the restructuring of the Company, and the resolution of various outstanding issues, the directors of Bonatla considered it prudent to acquire a select but varied investment and development portfolio of property in order to provide shareholders with a sustainable above market- related yield on their investment in Bonatla. Properties in various locations with varying uses have been selected in order to fulfil this ambition. In addition, and for the sake of an element of diversification, a financial services acquisition has been included in this group of acquisitions," Bonatla said. - Ray Faure, I-Net Bridge
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