| Wed 20 Feb 2008, 11:41 | | TKG - Telkom SA Limited - Repurchase Of Ordinary Shares |
|
TKG
TKG
TKG - Telkom SA Limited - Repurchase Of Ordinary Shares
Telkom SA Limited
(Registration number: 1991/005476/06)
(ISIN number: ZAE000044897)
JSE and NYSE share code: TKG
("Telkom" or "the company")
Repurchase of ordinary shares
1. Introduction
Further to the announcement of 17 July 2006, shareholders are advised that
Telkom has repurchased 16,759,958 Telkom ordinary shares (3.01% of the original
issued ordinary shares) on the JSE Limited ("JSE"), since and in accordance with
the general authority granted by Telkom shareholders at the annual general
meeting held on 21 October 2005 and renewed respectively at the annual general
meetings of 20 October 2006 and 26 October 2007 ("the repurchase"). The
repurchases were effected on the open market in accordance with paragraph 5.72
(a) of the JSE Listings Requirements.
2. Authorised repurchase limits
In terms of the special resolution the general authority is limited to a maximum
of 20% of Telkom`s issued ordinary share capital. Therefore a maximum of
106,571,105 ordinary shares (being 20% of the 532,855,528 ordinary shares in
issue as at 26 October 2007) may be repurchased in terms of the said general
authority.
3. Implementation
The repurchase of 8,582,752 Telkom ordinary shares by Telkom was executed
between 14 July 2006 and 17 January 2007. The repurchase of 8,177,206 Telkom
ordinary shares was executed between 22 January 2008 and 19 February 2008. The
repurchases were effected as market conditions allowed. No ordinary shares were
repurchased in closed periods.
Financial Financial
year ended year ended
March 2007 March 2008
Number of ordinary shares 8,582,752 8,177,206
repurchased
Value of ordinary shares 1,150.09 1,119.82
repurchased (including costs)
(ZAR million)
Highest price paid per ordinary 143.79 141.09
share (ZAR)
Lowest price paid per ordinary 120.39 131.44
share (ZAR)
Average price paid per ordinary 133.51 136.45
share (excluding costs) (ZAR)
Total
Total number of ordinary shares 8,177,206
repurchased to date by the company
in terms of the general authority
granted on 26 October 2007
Ordinary shares in issue at 31 532,855,528*
March 2007
Ordinary shares in issue on date of 532,855,528*
this announcement
Number of shares that may continue 98,393,899
to be repurchased in terms of the
authority
Percentage of shares that may 18.47
continue to be repurchased in terms
of the authority (%)
* 8,582,752 ordinary shares have already been cancelled from the issued share
capital and 8,177,206 ordinary shares are in the process of being cancelled.
4. Source of funds
Repurchases to date has been funded from available cash resources.
5. Opinion of the directors
The directors of Telkom have considered the impact of the repurchases and are of
the opinion that:-
5.1 Telkom and the group will be able, in the ordinary course of business, to
pay their debts for a period of 12 months from the date of this announcement;
5.2 the assets of Telkom and the group will be in excess of the liabilities of
Telkom and the group for a period of 12 months from the date of this
announcement, measured in accordance with the accounting policies used in the
audited annual financial statements for the year ended 31 March 2007;
5.3 the ordinary share capital and consolidated reserves of Telkom and the group
will be adequate for a period of 12 months from the date of this announcement;
and
5.4 the working capital of Telkom and the group will be adequate for a period of
12 months from the date of this announcement.
6. Financial effects
As reported at Pro %
31 March 20071 forma2,3 Change
Earnings per share (cents) 1,681.0 1,693.8 0.8
Headline earnings per share (cents) 1,710.7 1,724.0 0.8
Net asset value per share (cents) 6,223.2 6,101.4 (2.0)
Tangible net asset value per share (cents) 5,220.6 5,082.5 (2.6)
1 Reported results are based on the weighted average shares in issue taking into
account the 8,582,752 purchased and cancelled prior to 31 March 2007.
2 Pro forma numbers presented are based on the assumption that the 8,177,206
ordinary shares purchased after 31 March 2007, were purchased on 1 April 2006
3. For the purposes of calculating the earnings and headline earnings per share,
it is assumed that all repurchases were financed by excess cash on hand on which
interest was received at an after tax rate of 6.5% per annum.
Pretoria
20 February 2008
Sponsor: UBS
Date: 20/02/2008 11:41:34 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
