AltX-listed Acc-Ross has sold The Bay development at Hartbeespoort Dam for R195,6m to an Ivora Properties consortium including Carnoustie Investment Trust, Sibo & Busi Investment Trust and Walden Business Trust.

Directors said the sale would generate additional cash flow and strengthen the balance sheet. The Bay had provided the group with a large short-term return. Over the six months to August, the 300ha development was valued at about R200m.

In terms of the sale agreement, R95,6m will be paid in cash, with the balance to be settled through the issue of debentures, redeemable in tranches up to 42 months from the date of transfer. The debentures become interest bearing 18 months after the date of transfer of the land.

The sale is subject to board approvals, loan funding confirmation from banks, shareholder approval and Competition Board approval.

Had the sale been effective on March 1, it would have increased headline earnings a share by 1350% to 7,49c a share from 0,52c. Tangible net asset value would have increased 68% to 17,23c a share from 10,30c a share.

Acc-Ross reported a R1,89m net profit in the six months to August, from a R1,78m loss in the corresponding period last year.

The share price closed 3,6% higher at 29c on Friday, well down on the February listing price of R1 a share.

Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge