Johncom - Disposal of shares in MTN Group Limited and trading update
Johnnic Communications Limited
Registered in the Republic of South Africa
(Registration number 1889/000352/06)
Share code: JCM ISIN: ZAE000024584
("Johncom")
Disposal of shares in MTN Group Limited and trading update
The disposal
Between April 2002 and March 2003, Johncom disposed of 15 458 810 shares in its
listed equity investment in MTN Group Limited ("MTN") on the open market ("the
disposal"). The proceeds, totalling R210 million, will be utilised to reduce
debt. The balance of 10 793 210 shares in MTN are currently being held partly
to satisfy obligations under Johncom"s employee share scheme and have partly
been pledged as security for Johncom"s debt obligations.
Based on the marked-to-market value at which the MTN investment was recorded in
Johncom"s interim results as at 30 September 2002, a surplus of R93 million was
realised from the disposal. The pro forma effect on the headline earnings,
attributable earnings and net asset value per ordinary share for the six month
period ended 30 September 2002 would have been as follows:
Cents per ordinary Interim results as at After the Change %
share 30 September 2002 disposal
Note 1
Headline earnings 45,0 49,0 9,0
Attributable earnings
(loss) (26,0) 65,0 350,0
Net asset value 13,9 14,7 6,0
Note:
The unaudited pro forma financial effects have been prepared for illustrative
purposes only to provide information as if the disposal had been effected on 1
April 2002 and assumes an interest rate of 13% per annum, being the average
after-tax interest paid by Johncom on its debt.
Trading update
We are pleased to report that the most recent forecasts indicate, that the
second half of the 2003 financial year will deliver results in line with
previous forecasts, despite the influence of a stronger Rand on the results from
our offshore operations.
Johannesburg
25 March 2003
Sponsor
Nedbank Corporate
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