Hotel group plans to delist from JSE

Hotel group turned residential letting company, the Don Group on Wednesday said it planned to delist from the JSE after buying out minorities. FILE PHOTO: The Don Group CEO Thabiso Tlelai

Hotel group turned residential letting company, the Don Group on Wednesday said it planned to delist from the Johannesburg Stock Exchange (JSE) after buying out minorities.

Last year the group sold its remaining five hotel properties‚ resulting in the company being classified as a cash shell in terms of the JSE’s listing requirements.

The company had a period of six months after this classification to enter into an agreement relating to the acquisition of viable assets that would satisfy the conditions for listing‚ or face suspension of its listing.

The company said that on August 15 2013 the last of the properties was transferred‚ which meant The Don was classified as a cash shell.

The Don Group had until February 15 2014 to enter into an agreement relating to an acquisition‚ but as it had been unable to do so‚ the JSE has advised the company that its listing would be suspended with immediate effect.

The board has decided to make an offer to shareholders to buy back the shares in The Don at a price equal to the net asset value of the company and thereafter to delist The Don from the JSE.

It said further details would be released in due course.