Published: 05 March 2014

African Sun has entered into a sale agreement for Dawn Properties' linked units with Lengrah Investments, a related party.

This will result in the hotel group disposing of 406 466 976 Dawn Properties' linked units, constituting 16.54% of the total issued linked units of Dawn Properties, to Lengrah Investments for a cash consideration of $5.97 million subject to African Sun shareholders' approval at an extra-ordinary general meeting to be held on March 21, 2014.

The group expects proceeds from the disposal to be applied towards the reduction of short term debt.

Finance costs will be reduced by $986 711 per annum going forward in addition to the $740 000 saving in finance costs per annum from the first disposal of 12% of the issued linked units in Dawn Properties.
- herald

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