| Wed 12 Mar 2008, 8:30 | | AVI - AVI Limited - AVI`s Repurchase Programme Rea |
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AVI
AVI
AVI - AVI Limited - AVI`s Repurchase Programme Reaches 3% Mark
AVI Limited
(Incorporated in South Africa)
(Registration number: 1944/017201/06)
ISIN Code: ZAE000049433
JSE Code: AVI
("AVI" or "the Company")
AVI`S REPURCHASE PROGRAMME REACHES 3% MARK
1. INTRODUCTION
Shareholders are advised that AVI has through a wholly-owned subsidiary,
AVI Investment Services (Proprietaryy) Limited ("AIS") purchased 3% of its own
shares on the open market of the JSE Limited ("JSE"), in accordance with the
general authority granted by its shareholders at its annual general meetings
held on 18 October 2006 and 24 October 2007 ("the repurchase").
2. AUTHORISED REPURCHASE LIMITS
In terms of the special resolution and the Listings Requirements of the JSE:
(a) the general authority limits repurchases to a maximum of 20% of the
Company`s shares in issue at the time the general authority is granted;
(b) this general authority shall be valid until the Company`s next annual
general meeting, provided that it shall not extend past 15 months from the
date of passing the special resolution; and
(c) no repurchase may be made at a price more than 10% above the weighted
average of the market price of the Company`s shares on the JSE for the five
business days immediately preceding the date of such repurchase.
A maximum of 68 527 693 shares, being 20% of the 342 638 463 shares in issue on
24 October 2007, may be repurchased in terms of the general authority granted on
that date.
3. IMPLEMENTATION
The repurchase programme commenced on 12 September 2007 in terms of the general
authority granted on 18 October 2006 and continued after renewal of the general
authority on 24 October 2007.
A total of 10 392 398 shares, equivalent to 3,03% of the issued share capital
of AVI, had been purchased by AIS by 10 March 2008. No shares were purchased
during AVI`s closed period.
Details of shares repurchased since the commencement of the repurchase
programme are as follows:-
Number of ordinary shares repurchased 10 392 398
Cost of ordinary shares repurchased R 214,0 million
Highest price paid per ordinary share* R 21,96
Lowest price paid per ordinary share* R 16,18
Average price paid per ordinary share* R 20,51
* - excluding costs
4. EXTENT OF AUTHORITY OUTSTANDING
The extent of the authority outstanding is 58 135 295 shares, equivalent to
17,0% of the total issued share capital of AVI. This authority is valid until
the next annual general meeting scheduled for 15 October 2008.
5. SOURCE OF FUNDS
Repurchases have been and will in future continue to be funded from available
cash resources.
6. DIRECTORS` STATEMENT
The directors have considered the effect of the repurchases and are of the
opinion that:
6.1 the Company and the Group will be able in the ordinary course of business
to pay their debts for a period of 12 months after the date of this
announcement;
6.2 the assets of the Company and the Group, fairly valued in accordance with
IFRS and the accounting policies used in the Company`s financial statements for
the financial year ended 30 June 2007, will exceed its liabilities for a period
of 12 months after the date of this announcement; and
6.3 the share capital, reserves and working capital of the Company and the Group
will be adequate for ordinary business purposes for a period of 12 months from
the date of this announcement
The directors confirm that the repurchase programme was effected through the
order book operated by the JSE trading system and without any prior
understanding or arrangement between the Company and the respective
counterparties.
7. ILLUSTRATIVE FINANCIAL EFFECTS OF THE REPURCHASE
The directors of AVI are responsible for the preparation of the unaudited
pro forma financial information, which has been included for the purposes of
illustrating the effect of the repurchase on AVI`s earnings, headline
earnings, net asset value and net tangible asset value per share on the
relevant reporting date. Due to their nature, the unaudited pro-forma
financial effects may not be a fair reflection of AVI`s financial position
after the implementation of the repurchase or of AVI`s future earnings.
Percentage
Before(1) After(2) change (%)
Attributable earnings per share cents 156,6 157,7 0,7
Diluted earnings per share cents 155,7 156,7 0,6
Headline earnings per share cents 146,8 147,6 0,5
Fully diluted headline earnings per cents 145,9 146,7 0,5
share
Weighted average number of shares million 313,8 303,4 (3,3)
Weighted average diluted number of million 315,6 305,2 (3,3)
shares
Net asset value per share cents 847,0 801,3 (5,4)
Net tangible asset value per share cents 512,2 455,1 (11,1)
Notes and Assumptions:
1) The "Before" column is based on AVI`s published audited financial
statements for the year ended 30 June 2007, before the repurchase of any
shares.
2) The "After" column reflects the unaudited pro forma financial effects
after the repurchase of 3,0% of the shares calculated on the
assumption that:
a) 3,0% of the shares were repurchased on 1 July 2006 for
purposes of calculating the income statement effects and on 30 June 2007
for purposes of calculating the balance sheet effects.
b) The repurchases were financed by excess cash on hand and interest was
calculated at the prevailing deposit interest rates for the year ended
30 June 2007.
c) Tax was calculated at a rate of 29%.
d) The total issued number of shares remains at 342,6 million. For the
purposes of calculating the net asset and tangible net asset values per
share, it was assumed that the repurchases were carried out on 30 June
2007. The calculation is based on the number of shares in issue
adjusted
by the treasury shares including any repurchases (Before 314,2 million
After 303,9 million).
8. STOCK EXCHANGE LISTING
The repurchased shares are held by AIS as treasury shares, and in terms of the
Listings Requirements of the JSE may not vote on any JSE resolution. All the
repurchased shares will remain in issue and are held as a long-term investment.
9. CONCLUSION
The board will consider further repurchases of ordinary shares in terms of the
general authority granted on 24 October 2007, should an opportunity to do so,
which is in the best interests of the Company and its shareholders, present
itself.
12 March 2008
Illovo, Johannesburg
Issued by sponsor: Standard Bank
Date: 12/03/2008 08:30:09 Produced by the JSE SENS Department.
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