| Fri 7 Mar 2008, 11:59 | | MVG - Mvelaphanda Group Limited - Share buy back a |
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MVG
MVG - Mvelaphanda Group Limited - Share buy back announcement
Mvelaphanda Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1995/004153/06)
Ordinary share code: MVG & ISIN: ZAE000060737
Preference share code: MVGP & ISIN: ZAE000073540
("Mvela Group" or "the company")
Share buy back announcement
1. Repurchase
Shareholders are advised that a wholly-owned subsidiary of Mvela Group has
now repurchased a further 3.1% of its own shares on the open market of the
JSE Limited ("JSE"), in accordance with the general authority granted by
Mvela Group`s shareholders at the annual general meeting held on 27 January
2007 ("the share repurchase"). The share repurchase was conducted from 5
September 2007 to 25 October 2007 and from 4 March 2008 to 5 March 2008.
2. Details of the share repurchase
Details of the share repurchase are set out below:
* Number of ordinary shares repurchased 13 528 811
* Percentage of the company`s issued 3.1%
ordinary shares on the date of the
granting of the general authority
* Total value of ordinary shares R139 298 851
repurchased
* Highest price paid per ordinary share 1 090
repurchased (cents)
* Lowest price paid per ordinary share 840
repurchased (cents)
* Average price paid per ordinary share 1 030
repurchased (cents)
* Number of ordinary shares which may 61 662 681
still be repurchased in terms of the
general authority
* Percentage of Mvela Group`s issued 13.9%
ordinary shares which may still be
repurchased in terms of the general
authority.
3. Source of funds
The share repurchase was implemented using existing cash resources.
4. Directors` opinion
The directors of Mvela Group have considered the effects of the share
repurchase and are unanimously of the opinion that:
- the company and its subsidiaries will be able to meet their debt
obligations in the ordinary course of business for a period of 12
months after the date of this announcement;
- the assets of the company and its subsidiaries, fairly valued in
accordance with the accounting policies used by the company in its
financial statements for the year ended 30 June 2007, exceed the
liabilities of the company and its subsidiaries;
- the issued capital and reserves of the company and its subsidiaries are
adequate for the purposes of the business of the company and its
subsidiaries for a period of 12 months after the date of this announcement;
and
- the working capital available to the company and its subsidiaries is
sufficient for the company and its subsidiaries` requirements for a period
of 12 months after the date of this announcement.
5. Financial effects of the share repurchase
The table below sets out the pro forma financial effects of the share
repurchase on Mvela Group`s unaudited earnings per ordinary share, headline
earnings per ordinary share, fully diluted earnings per ordinary share and
fully diluted headline earnings per ordinary share for the six months ended
31 December 2007, as well as Mvela Group`s net asset value per ordinary
share and net tangible asset value per ordinary share at 31 December 2007.
This pro forma information has been prepared for illustrative purposes only and,
because of its nature, may not give a true reflection of the actual financial
effects on Mvela Group.
The directors are responsible for the preparation of the pro forma financial
information.
Unaudited
six months Pro forma
ended after the
31 December share %
2007 (1) Repurchase (2) Change (3)
Earnings per ordinary (95.2) (99.7) 4.7%
share (cents)
Headline earnings per (95.2) (99.7) 4.7%
ordinary share (cents)
Fully diluted earnings per (53.2) (55.4) 4.1%
ordinary share (cents)
Fully diluted headline (53.2) (55.4) 4.1%
earnings per ordinary
share (cents)
Net asset value per 844.0 843.0 (0.1%)
ordinary share (cents)
Net tangible asset value 699.0 697.8 (0.2%)
per ordinary share (cents)
Notes:
1. The "Unaudited six months ended 31 December 2007" column of the table is
Mvela Group`s unaudited results for the six months ended 31 December 2007,
which were published in the press on 28 February 2008.
2. The "Pro forma after the share repurchase" column of the table is
calculated assuming that the ordinary shares had been repurchased on 1 July
2007 with the funds in hand on which there would have been a loss of
interest received, calculated at an after-tax of 8,0% per annum.
3. The percentage change columns are calculated with reference to the
"Unaudited six months ended 31 December 2007" column.
6. JSE listing
The ordinary shares repurchased will not be cancelled but will be retained
by a wholly-owned subsidiary of Mvela Group. Accordingly, the ordinary
shares will continue to be listed on the JSE.
Sandton
7 March 2008
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 07/03/2008 11:59:36 Produced by the JSE SENS Department.
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