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REIZ shares up for US$2.8m

THE Real Estate Investments Zambia (REIZ) intends to sell its shares in Burnet Investments Limited to Stanbic Bank Zambia Limited for US$2.8 million.
Burnet Investments Limited, a building which is situated on Addis Ababa Drive, is currently owned by REIZ and Standard Bank Properties Limited of South Africa in the ratio 49 percent and 51 percent, respectively.
The disposal of REIZ shares held in Burnet Investments Limited is subject to terms and conditions in the purchase agreement executed on June 30, 2015.
“This announcement sets out the information pertaining to the sale of REIZ’s shares in Burnet Investments Limited to Stanbic Bank Zambia Limited, Stanbic Bank Zambia Limited and Charles Mwanyara Mudiwa…
“Net consideration of US$2,835,625 payable by Stanbic Zambia Limited to REIZ through cash payment. The consideration comprises US$2,835,624 for A shares in favour of Stanbic Bank Zambia Limited and US$1 for B shares in favour of Charles Mwanyara Mudiwa,” the Lusaka Stock Exchange announcement reads.
The sale of shares is subject and conditional to the purchaser obtaining Bank of Zambia approval for the transaction, execution and delivery of the board of Burnet resolution authorising this transaction.
Other conditions are the purchaser obtaining the approval of the board of directors and any other regulatory approvals required to enable them to buy the shares and to perform any of its obligations hereunder among others.
Under the agreement, each party shall use its reasonable endeavours to procure that each of the conditions precedent is satisfied on or before the expiry of six weeks from the date of this agreement.
It also says if the conditions precedent has not been fulfilled within the time frame stipulated such other time as is agreed between the parties none of the parties shall have any further rights or obligations under the agreement.