| Thu 21 Feb 2008, 13:56 | | VLE - Value Group Limited - Repurchase of ordinary shares in Value |
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VLE
VLE
VLE - Value Group Limited - Repurchase of ordinary shares in Value
Value Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/002203/06)
ISIN code: ZAE000016507
Share code: VLE
("Value")
Repurchase of ordinary shares in Value
Introduction
In terms of a general authority granted by Value shareholders at the Value
annual general meeting held on 27 September 2007, a special resolution was
passed to approve the repurchase of its ordinary shares.
Authorised limits
A maximum of 41 119 808 ordinary shares (being 20% of the issued share capital)
could be acquired.
Implementation
In terms of paragraph 11.27 of the JSE Listings Requirements, Value announces
that it has acquired, in the open market, 6 800 000 ordinary shares, equivalent
to 3,31% of the issued share capital at the time of the granting of the general
authority, for the total consideration of R13 056 403. The repurchases were
carried out between
19 December 2007 and 19 February 2008. The highest price paid was R2.20 per
share and the lowest price paid was R1.76 per share. The average price paid was
R1.92 per share.
The requirements of paragraph 5.72 of the JSE Listings Requirements have been
complied with in the repurchase of these shares. The extent of the authority
outstanding is 34 319 808 ordinary shares, equivalent to 16,69% of the total
number of shares in issue.
Source of funds
The repurchases to date have been funded from available cash resources and it is
intended that all future purchases will also be funded from available cash
resources.
Opinion of the directors
The directors of Value have considered the impact of the share repurchase and
are of the opinion that:
- Value and its subsidiaries will be able, in the ordinary course of
business, to repay its debts for a period of 12 months from the date of this
announcement.
- The assets of Value and its subsidiaries are in excess of the liabilities,
measured in accordance with the accounting policies used in the unaudited
results for the 6 month interim period ended 31 August 2007.
- The ordinary share capital and reserves of Value and its subsidiaries will
be adequate for a period of 12 months from the date of this announcement.
- The working capital of Value and its subsidiaries will be adequate for a
period of 12 months from the date of this announcement.
Financial effects on earnings and net asset value
Unaudited
interim
results as Proforma %
reported at (cents) Change
31 August 2007
(cents)
Basic earnings per share 4,8 4,7 (2,1)
Headline earnings per 5,4 5,4 -
share
Diluted basic earnings 4,7 4,7 -
per share
Diluted headline 5,3 5,3 -
earnings per share
Tangible net asset value 184,0 183,7 (0,2)
per share
Net asset value per 184,0 183,7 (0,2)
share
Assumptions:
The proforma financial effects are calculated on Value`s unaudited interim
results for the 6 month period ended 31 August 2007, assuming:
* The accounting policies employed by Value for the unaudited 6 month interim
period ended 31 August 2007 have been applied in making these calculations.
* For the purposes of calculating the earnings and headline earnings figures,
it was assumed that all the repurchases were carried out on or before 1
March 2007.
* All the repurchases were financed by excess cash on hand on which interest
was received at an after tax rate of 6,2% per annum.
* The calculations have been based on a weighted average number of shares in
issue of 195 861 311 and a fully diluted weighted average number of shares
in issue of
200 550 559.
* For the purposes of calculating the net asset and tangible net asset
values, it was assumed that the repurchases were carried out on 31 August
2007, using the number of shares in issue at that date of 205 599 040.
JSE Listing
All the shares have been repurchased by a subsidiary of Value and are being held
in the subsidiary company as treasury shares.
Johannesburg
21 February 2008
Sponsor: Investec Bank Limited
Date: 21/02/2008 13:56:01 Produced by the JSE SENS Department.
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