| Mon 5 Nov 2007, 14:00 | | MET - Metropolitan Holdings Limited - Repurchase o |
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MET
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MET - Metropolitan Holdings Limited - Repurchase of metropolitan ordinary shares
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 METROPOLITAN ORDINARY SHARES
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 held on Thursday,
31 May 2007 through Merrill Lynch South Africa (Pty) Limited.
2. IMPLEMENTATION
During the period 5 June 2007 to 2 November 2007 (excluding the closed
period from 1 July 2007 to 12 September 2007), the company acquired a total
of 16 514 048 ordinary shares, equivalent to 3.00% of Metropolitan`s issued
ordinary share capital as at 31 May 2007, at prices ranging from 1 459
cents to 1 599 cents per ordinary share, for a total consideration of
approximately R257 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"). These shares will be cancelled and
delisted as soon as possible.
The board and management of Metropolitan confirm that buying back ordinary
shares at prices up to fair value, as part of an ongoing capital management
programme, is an effective and efficient way of adding value for
shareholders.
The extent of the outstanding repurchase authority is 94 million
Metropolitan ordinary shares.
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 of this share repurchase have been prepared using
accounting policies that comply with International Financial Reporting
Standards and have been prepared 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 Metropolitan ordinary
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 After all % change
reported repurchases
30 June
2007
Diluted earnings per 124.15 126.00 1.5
share
Diluted headline 124.15 126.00 1.5
earnings per share
Net asset value per 1 131 1 120 (0.9)
share
Embedded value per 1 761 1 766 0.3
share
Assumptions: The shares were acquired out of cash resources that earned an after
tax interest rate of 3.0% for the half year.
Cape Town
5 November 2007
Sponsor in South Africa
Merrill Lynch South Africa (Pty) Limited
Date: 05/11/2007 14:00:20 Produced by the JSE SENS Department.
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