On 18 November 2005 Santumas Shareholdings plc announced that it has entered into a preliminary agreement for the sale of certain immovable property and other rights to a third party for a total consideration of Lm1,520,000. The agreement expires on 1 November 2008 but the final deed of sale and purchase may, subject to certain terms and conditions, be entered into prior to that date.
In terms of the preliminary agreement, the purchase price is payable in instalments with a first payment, as a deposit on account of the purchase price and the final payment to be made on 1 November 2008. These payment terms remain applicable even if the final contract of sale is entered into prior to the 1 November 2008. Certain terms and conditions apply to the preliminary agreement including terms in connection with the remedies for counter-party default.
As part of the transaction which essentially relates to property in Marsascala contiguous to or in the vicinity of the Jerma Palace Hotel, the Company shall be assigning to the purchasers all its litigious rights in the court cases relative to the property being transferred.
It is also relevant to note that in the event of a 2008 completion, Santumas Shareholdings plc will be obliged to provide the purchasers with a bank guarantee to secure cash instalments which would meanwhile be paid to the Company by the purchasers ahead of the final transfer.