| Thu 22 Nov 2007, 15:17 | | IQG - IQuad - Repurchase of ordinary shares in Iqu |
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IQG
IQG
IQG - IQuad - Repurchase of ordinary shares in Iquad in terms of a general
authority
IQuad Group Limited
(Incorporated in the Republic of South Africa)
(Previously Indevco Holdings (Proprietary) Limited)
(Registration Number 2004/025177/06)
JSE Share code: IQG & ISIN: ZAE000101622
("IQuad" or "the company")
REPURCHASE OF ORDINARY SHARES IN IQUAD IN TERMS OF A GENERAL AUTHORITY
1. INTRODUCTION
IQuad has, in accordance with the general authority obtained at the
general meeting of shareholders held on 28 June 2007 ("the general
meeting"), cumulatively repurchased 4.20% of its issued ordinary share
capital on the JSE Limited("JSE"), ("the repurchases"). In accordance
with paragraph 11.27 of the Listings Requirements of the JSE, the
Company is disclosing details of the repurchases as they exceed 3% of
the ordinary shares in issue at the time that the authority was obtained
at the general meeting.
2. DETAILS OF THE REPURCHASES
The details of the repurchases which were effected between 14 August
2007 and 20 November 2007 are as follows:
Number of ordinary shares repurchased 1 215 933
Highest price paid per ordinary share purchased
597 cents
Lowest price paid per ordinary share purchased
490 cents
Total value of ordinary shares repurchased
R6 428 507
Number of ordinary shares which may still be
repurchased by IQuad in terms of the general
authority 1 677 792
Percentage or ordinary shares which may still be
repurchased by the Company in terms of the
general authority 5.80%
3. NO PRIOR UNDERSTANDING OR ARRANGEMENT
The repurchases were effected through the order book operated by the JSE
trading system and done without any prior understanding or arrangement
between the Company and the respective counter parties.
4. RATIONALE
The repurchases were effected as part of the Company`s strategy to
repurchase its own securities from time to time when market condition
are appropriate and the board of directors deem it to be in the best
interest of the Company.
5. SOURCE OF FUNDS
The repurchases were implemented using existing cash resources of IQuad
and the value of the shares repurchased will be set off against share
capital and share premium respectively.
6. DIRECTORS` OPINION
The directors of IQuad have considered the impact of the repurchases and
are of the unanimous opinion that for a period of twelve months from the
date of this announcement:
* the Company and the group will be able, in the ordinary course of
business, to pay their debts as they become due;
* the assets of the Company and the group, fairly valued in
accordance with South African statements of Generally Accepted
Accounting Practice, will be in excess of the liabilities of the
Company and the group;
* the working capital resources of the Company and the group will be
adequate for its current and foreseeable future business
requirements; and
* the issued share capital and/or reserves are adequate for the
purposes of the business of the Company and the group for the
foreseeable future.
7. PRO FORMA FINANCIAL EFFECTS OF THE REPURCHASES
The table below sets out, for illustrative purposes only, the pro forma
financial effects of the repurchases on IQuad`s net profit, headline
earnings, net asset value and net tangible asset value per share, based
on the unaudited results for the six month interim period ended 31
August 2007. Because of their nature they may not give a true
reflection of IQuad`s financial position, changes in equity and results
of operations and cash flows after the repurchases.
BEFORE AFTER CHANGE
Earnings per share (Note2) (cents) 26.4 26.9 1.9%
Headline earnings per (cents) 26.4 26.9 1.9%
share(Note2)
Net asset value per share(Note3) (cents) 440 437 -0.7%
Net tangible asset value per
share(Note3) (cents) 136 120 -11.8%
Weighted and closing number of
shares in issue (`000) 23 313 22 097 -5.2%
28 875 27 721 -4.0%
The pro forma financial effects have been calculated based on the
following assumptions:
1) the information in the "Before" column was extracted from the unaudited
interim results announcement in respect of the six months ended 31
August 2007;
2) the calculation of the pro forma earnings per share and headline
earnings per share in the "After" column, assumes that the repurchases
were effected on 1 March 2007 and the interest foregone of R197447
(after taxation), (calculated at an after taxation rate of 6.03% (8.5%
before taxation)), on the cash resources utilised for the repurchases
has been deducted from the pro forma profit and headline earnings per
share;
3) the effect on net asset value and net tangible asset value per share
assumes that the repurchases were implemented on 31 August 2007. The
cash of R6070763 utilised to effect the repurchases has been excluded
from the net asset and net tangible asset value. The cash effect of R357
744 (62425 shares)were already included in the interim balance sheet at
31 August 2007, as a portion of the repurchases were effected during
August 2007;
8. LISTING ON THE JSE
852 616 shares that have been repurchased will be cancelled and
application will be made to the JSE for the termination of the listing
thereof. 363 317 shares that have been repurchased will accordingly not
be cancelled and will be held as treasury shares and no application will
be made to the JSE for the termination of the listing thereof.
Port Elizabeth
22 November 2007
Designated Adviser
PSG Capital (Proprietary) Limited
Date: 22/11/2007 15:17:14 Produced by the JSE SENS Department.
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