| Mon 4 Jun 2007, 13:29 | | MET - Metropolitan - Repurchase of ordinary shares |
|
MET
MET
MET - Metropolitan - Repurchase of ordinary shares in Metropolitan
METROPOLITAN HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2000/031756/06
ISIN: ZAE000050456
JSE Share Code: MET
NSX Share Code: MTD
("Metropolitan")
REPURCHASE OF ORDINARY SHARES IN METROPOLITAN
1. INTRODUCTION
Shareholders are advised that Metropolitan Life Limited ("the company"), a
wholly owned subsidiary of Metropolitan, has repurchased Metropolitan
ordinary shares in accordance with the general authority granted by
Metropolitan shareholders at the annual general meeting (AGM) held on
Tuesday, 30 May 2006. This authority expired at the AGM, held on 31 May
2007.
2. IMPLEMENTATION
During the period 12 April 2007 to 31 May 2007, the company acquired a
total of 17.3 million ordinary shares, equivalent to 2.9% of its issued
ordinary share capital as at 30 May 2006, at prices ranging from 1 517
cents to 1 676 cents per ordinary share, for a total consideration of
approximately R280 million (excluding dealing and other associated costs).
These shares were repurchased in the open market at prices not exceeding
the limits prescribed in the general authority and by the Listings
Requirements of the JSE Limited ("JSE").
The board and management of Metropolitan confirm that buying back ordinary
shares at prices up to embedded value, as part of an ongoing capital
management programme, is an effective and efficient way of adding value for
shareholders.
3. SOURCE OF FUNDS
The share repurchase has been funded from available cash resources.
4. OPINIONS
The directors of Metropolitan have considered the impact of the share
repurchase and are unanimously of the opinion that:
- the company, and Metropolitan and its subsidiaries ("the group"),
will, in the ordinary course of business, be able to pay their debts for a
period of 12 months from the date of this announcement;
- the assets of the company and the group, fairly valued in accordance
with the accounting policies used in the latest audited annual group
financial statements, will remain in excess of the liabilities of the
company and the group;
- the issued ordinary share capital and reserves of the company and the
group are adequate for the purposes of the business for a period of 12
months from the date of this announcement;
- the available working capital of the company and the group is
sufficient for the requirements of the company and the group for a period
of 12 months from the date of this announcement; and
- subsequent to any repurchase, Metropolitan will comply with the JSE`s
spread requirements.
5. FINANCIAL EFFECTS
The financial effects have been prepared using accounting policies that
comply with International Financial Reporting Standards and have been
prepared, based on the 2006 full-year results, for illustrative purposes
only in order to assist shareholders to assess the impact of the share
repurchase on the diluted EPS, diluted HEPS, NAV and embedded value per
share. The presentation of the financial effects is the responsibility of
the directors and due to its nature may not fairly reflect the financial
position of the group after the share repurchase.
As reported After all % change
at repurchases
31 December (cents)
2006
(cents)
Diluted earnings per 279.45 283.45 1.4
share
Diluted headline 280.00 284.01 1.4
earnings per share
Net asset value per 1 195 1 182 (1.1)
share
Embedded value per 1 702 1 704 0.1
share
Assumptions:
The shares were acquired out of cash resources that earned an after tax
interest rate of 6% for the year.
The shares were bought at the beginning of the year.
SUMMARY OF CAPITAL MANAGEMENT ACTIVITIES DURING THE PAST YEAR
Share buy backs
Under the authority granted by shareholders at the AGM on 30 May 2006,
Metropolitan has bought back 46 million shares (R663 million), comprising
8% of the listed shares in issue at the date the authority was granted. The
details are as follows:
Period Rm Shares
(m)
June 2006 25 2
September - December 2006 358 27
April - May 2007 280 17
Total 663 46
Dividends paid
During the same period Metropolitan paid back R961 million to listed
shareholders in the form of dividends, 12% of the initial share price
(R12.69).
Dividend Cents Rm
Interim - September 2006 29 173
Final - April 2007 48 281
Special - April 2007 77 507
Total 154 961
FUTURE ACTIVITIES
The shareholders have renewed the buy back authority at the AGM held on 31
May 2007.
The extent of this new repurchase authority is 119 million Metropolitan
ordinary shares for the group, and 59 million shares for the company.
In March 2007 Metropolitan identified some R500 million that could be used
for further share repurchases. To date R280 million has been used.
Further progress has been made with regard to the economic capital model
and related activities.
The company will continue to explore opportunities to enhance shareholder
returns using the full range of capital management options available, as it
has been doing over the past five years.
Cape Town
4 June 2007
Sponsor in South Africa
Merrill Lynch South Africa (Pty) Limited
Date: 04/06/2007 13:29:01 Produced by the JSE SENS Department.
