| Mon 17 Sep 2007, 7:00 | | LEW - Lewis Group Limited - Repurchase of ordinary |
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LEW
LEW
LEW - Lewis Group Limited - Repurchase of ordinary shares on the open market
Lewis Group Limited
(Registration Number 2004/009817/06)
Share Code: LEW
ISIN Code: ZAE000058236
("Lewis")
REPURCHASE OF ORDINARY SHARES ON THE OPEN MARKET
Further to the announcement on 28 July 2006, shareholders are advised that Lewis
has now purchased an additional 3% of its own shares on the open market
("Additional Shares"), acting in terms of the general authority granted by
shareholders at general meetings held on 4 August 2006 and 3 August 2007 ("the
General Authority"). This has resulted in a cumulative repurchase of 9.37% of
its own shares.
In accordance with the Listings Requirements of the JSE Limited, the following
information is disclosed:
Repurchases of shares:
Additional Shares Cumulative
repurchases
Total number of shares 3,004,786 9,369,786
repurchased
% of the company`s ordinary
share 3% 9.37%
capital in issue
Total value of shares R 175 301 720 R 486 899 441
repurchased
Average price paid R58.34 R51.67
Highest price paid R65.90 R65.90
Lowest price paid R47.44 R41.75
Period of repurchases of 29 July 2006 to 21 September 2005
shares, 13 September 2007 to
excluding closed periods 13 September 2007
Number of shares which may
still be
repurchased by Lewis in 19,847,142 19,847,142
terms of the
General Authority
The share purchases were funded from available funds.
Directors` statement:
The directors have considered the effect of the repurchases and are of the
opinion that:
1 the ability of Lewis to continue to pay its debts in the ordinary course of
business will not be affected by the repurchases for the period of 12
months after the date of this announcement;
2 the assets of Lewis exceed its liabilities, measured in accordance with the
accounting policies used in the group`s audited annual financial statements
for the year ended 31 March 2007 for a period of 12 months from the date of
this announcement;
3 the ordinary capital and reserves of Lewis are adequate for its
requirements for the period of 12 months from the date of this
announcement; and
4 the working capital of Lewis is adequate for its requirements for the
period of 12 months from the date of this announcement.
Financial effects of the repurchase:
The table below sets out the effect that the share repurchase would have had on
the earnings and net asset value per share of Lewis, based on Lewis`s audited
annual financial statements for the year ended 31 March 2007. These financial
effects have been prepared to assist Lewis shareholders to assess the impact the
share repurchase would have had on the financial position and results of
operations of Lewis. These financial effects are the responsibility of the Lewis
directors and have been prepared for illustrative purposes only. Due to their
nature, they may not fairly present Lewis` financial position or results of
operations of Lewis.
Cents per share Before the After the % change
Repurchase (1) Repurchase
Earnings (2) 649.9 660.1 1.57%
Headline earnings (2) 645.4 655.6 1.58%
Net asset value (3) 2774.3 2696.0 (2.82%)
Tangible net asset value (3) 2774.3 2696.0 (2.82%)
Assumptions:
1. The numbers set out in the "Before the Repurchase" column has been
extracted from the annual results for the year ended 31 March 2007.
2. The earnings and headline earnings per share in the "After the Repurchase"
column are based on the following assumptions:
- the total share repurchases were made on 1 April 2006; and
- an opportunity cost of 8.39% per annum before taxation (5.96% per
annum after taxation) has been applied to such purchases.
3. The net asset value and tangible net asset value per share in the
"After the Repurchase" column are based on the assumption that the shares
were purchased on 31 March 2007.
Stock exchange listing:
2 851 928 shares repurchased will not be cancelled from the issued share capital
of Lewis, but will be retained by its subsidiary, Lewis Stores (Proprietary)
Limited resulting in a cumulative holding of treasury shares by the subsidiary
of 9 216 928 shares. The remaining 152 858 shares will be cancelled and an
application to delist these shares will be made to the JSE.
Cape Town
17 September 2007
Sponsor: UBS South Africa (Pty) Ltd
Date: 17/09/2007 07:00:01 Produced by the JSE SENS Department.
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