NEWS Flash!!! North Island Sold Though Closing of Sale Not Yet Firm

Wilderness sells North Island

Written by NCHIDZI SMARTS

Wednesday, 19 May 2010 00:00

The North Island, situated in the Seychelles and owned by Wilderness Safaris is up for sale, the tourism outfit has announced. The Botswana Stock Exchange (BSE) and Johannesburg Stock Exchange (JSE) listed company last week cautioned its shareholders to exercise care when dealing in the company’s shares until a further announcement is made.

In a statement released last Friday, shareholders were advised of a transaction that could potentially affect the company’s share price. Shareholders were further advised that the transaction pertains to the sale, by an associated company of the Wilderness Group, of North Island situated in the Seychelles, and as such the transaction is subject to a number of conditions. “Shareholders of Wilderness Holdings are advised that an associated company of the Wilderness Holdings group has entered into negotiations which, if successfully concluded, may have an effect on the price of the company's shares. Accordingly, shareholders are advised to continue exercising caution when dealing in their Wilderness shares until such time as a full announcement is made.”

In addition, the directors announced that Wilderness has concluded a joint venture agreement in respect of Duba Plains Camp in the Okavango Delta. “In terms of this agreement the camp will continue to be marketed by Wilderness Safaris (Pty) Ltd but henceforth will be managed by Great Plains Conservation. The assets of the business have been sold and the proceeds of US$4.5 million were received, thus improving the group’s cash resources and balance sheet accordingly.”

Wilderness Safaris, established 26 years ago, operates over 60 camps and safaris in Botswana, Namibia, Malawi, South Africa, Zambia, Zimbabwe and the Seychelles.

On the local bourse, Wilderness Holdings is reported to have been one of the biggest movers during the week. Motswedi Securities reported that Wilderness Holdings moved for the first time to 425 thebe since the company listed on the BSE on April 8. The tourism operator will also be releasing its maiden financial results to the market on May 31.