| Tue 25 Mar 2008, 10:23 | | VLE - Value - Repurchase Of Ordinary Shares In Value |
|
VLE
VLE
VLE - Value - 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, a further 7,857,138
ordinary shares, equivalent to 3,82% of the issued share capital at the time
of the granting of the general authority, for the total consideration of
R14,610,686. The repurchases were carried out between
20 February 2008 and 19 March 2008. The highest price paid was R1.91 per
share and the lowest price paid was R1.76 per share. The average price paid
was R1.85 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 26,462,670 ordinary shares, equivalent to 12,87% of
the total number of shares in issue.
To date, the total number of ordinary shares repurchased since the granting
of the general authority amounts to 14,657,138 for a total consideration of
R27,667,089. These repurchases equate to 7,13% of the issued share capital
at the time of the general authority grant. The highest price paid was
R2.20 per share and the lowest price paid was R1.76 per share. The average
price paid was R1.87.
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 4,6 (2,1)
per share
Diluted headline 5,3 5,3 -
earnings per share
Tangible net asset value 184,0 183,6 (0,2)
per share
Net asset value per 184,0 183,6 (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 188,004,173 and a fully diluted weighted average number of
shares in issue of
192,693,421.
- 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. This was adjusted by the shares held in the Value Group share
incentive scheme and the share repurchases subsequent to 31 August
2007.
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
25 March 2008
Sponsor: Investec Bank Limited
Date: 25/03/2008 10:23:10 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.
