| Fri 20 Jun 2008, 7:05 | | DEL - Delta Electrical Industries Limited - Capital reduction |
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DEL
DEL
DEL - Delta Electrical Industries Limited - Capital reduction
Delta Electrical Industries Limited
Incorporated in the Republic of South Africa
(Registration number 1919/006020/06)
Share code: DEL & ISIN: ZAE000002036
("Delta" or "the Company" or "the Group")
CAPITAL REDUCTION
Shareholders are referred to the announcement dated 26 March 2008 advising
shareholders that the Delta board had taken the decision to defer the proposed
pro rata repurchase of shares communicated to shareholders in the audited group
results announcement for the year ended 27 December 2007, until the full extent
of the US preliminary anti-dumping finding was better understood.
Whilst the possible outcomes of the US anti-dumping investigations are now
better understood and would not effect the Group`s ability to fund a pro rata
repurchase of shares, the Board appreciates that the information available to
shareholders in respect of the value to be realized from the Group`s Australian
assets and in respect of the EMD market and the Group`s longer term prospects
may not be sufficient to make fully informed decisions with respect to a share
repurchase.
Shareholders are therefore advised that in lieu of a pro rata share repurchase,
the Group will make a 229 cents per share payment to all shareholders out of the
Group`s total share premium of R113 million ("the capital reduction"). The
capital reduction is made in accordance with the general authority granted to
directors, most recently at the Annual General Meeting held on Wednesday, 16
April 2008.
The salient dates will be as follows:
Last date to trade Friday 4 July 2008
Shares to commence trading "ex" the capital Monday 7 July 2008
reduction
Record date Friday 11 July 2008
Payment date Monday 14 July 2008
Share certificates may not be dematerialised or rematerialised between Monday 7
July 2008 and Friday 11 July 2008, both days inclusive.
The Group anticipates sufficient cash balances later during the year to either
implement a voluntary pro rata share repurchase or pay a special dividend.
FINANCIAL EFFECTS OF THE CAPITAL REDUCTION
Set out in the table below are the pro forma financial effects of the capital
reduction on the Company`s earnings per share ("EPS"), headline EPS, net asset
value ("NAV") and net tangible asset value ("NTAV") per share based on the
audited results of the Company for the year ended 27 December 2007.
The pro forma financial effects have been prepared for illustrative purposes
only and, because of their nature, may not give a true reflection of the
Company`s financial position, changes in equity, result of operations or cash
flows. The pro forma financial effects are the responsibility of the Company`s
directors.
Before the capital After the general Change
reduction(1) capital reduction (%)
(cents) (2,3,4)
(cents)
EPS (419.0) (433.8) (4)
Headline EPS (297.9) (312.7) (5)
NAV 1323 1094 (17)
NTAV 1323 1094 (17)
Notes:
1 Per Delta 2007 Audited Annual Report.
2 R112.6 million utilised for capital reduction from available cash
resources.
3 Adjustments to EPS and headline EPS have been made on the assumption that:
(a) the payment to shareholders was done on 28 December 2006; and
(b) interest was foregone for 2007 on R112.6 million at an average call rate in
2007 of 9.35% pre tax.
4 Adjustments to NAV and NTAV have been made on the assumption that the
payment to shareholders was done on 27 December 2007.
The pro forma financial information disclosed above has been presented in a
manner consistent with both the format and accounting policies adopted by Delta
and, in quantifying pro forma adjustments, the accounting policies are on the
same basis as Delta normally adopts in preparing its annual financial
statements.
Sandton
20 June 2008
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 20/06/2008 07:05:01 Produced by the JSE SENS Department.
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