South African Property Shares Sink As It Plans Cancellation From AIM (ALLISS)

29th Mar 2018 10:11

LONDON (Alliance News) - South African Property Opportunities PLC on Thursday said it intends to propose the winding-up of the company shortly after the unsuccessful attempt to sell its Brakpan asset.

Shares in South African Property were down 90% at 0.10 pence on Thursday.

The company said, as part of its strategy to sell its remaining assets, it has been unsuccessful in selling the Brakpan asset. Brakpan is a mining town in Gauteng province.

The firm said it had contracted to sell the Brakpan asset for ZAR11 million, or GBP650,000. However, the company attempted to enforce this contract without success.

"The board has concluded that the costs of enforcement will be significant with no guarantees of success. In summary, the company's interest in the Brakpan asset is through a joint venture agreement entered into before the appointment of each of the directors, and which has proven to be poorly drafted," South African Property said.

Accordingly, the board has determined that the remaining interest in the Brakpan Asset is of "little or no achievable value".

For the six months to December 31, the company posted a comprehensive loss of GBP685,618, reflecting costs for the period together with an estimate of the future costs of the company up to the conclusion of the liquidation and the write off of remaining investment balances in South Africa.

The comprehensive loss compared to a GBP260,000 profit a year before. The company's pretax loss came in at GBP406,000, compared to a profit of GBP5.2 million a year earlier.

As South African Property now considers that it is "no longer practicable" to operate in the hope of generating meaningful proceeds from a disposal of the Brakpan asset, the board will shortly place proposals before shareholders for a voluntary winding-up, the appointment of a liquidator and the cancellation of its shares on AIM.

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South African Property Opportunities