| Thu 17 Jul 2008, 16:41 | | KEL - Kelly Group Limited - Repurchase announcement |
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KEL
KEL
KEL - Kelly Group Limited - Repurchase announcement
KELLY GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1999/026249/06)
ISIN: ZAE000093373
SHARE CODE: KEL
("Kelly Group or "the company")
REPURCHASE ANNOUNCEMENT
1. INTRODUCTION
The Kelly Group herewith announces the repurchase of 3,111,877 (3.1% of the
issued ordinary shares) Kelly Group ordinary shares effected through the order
book operated by the JSE Limited ("JSE"), since and in accordance with the
general authority granted by the company`s shareholders at the annual general
meeting held on 15 February 2008 ("the repurchase").
2. AUTHORISED REPURCHASE LIMITS
In terms of the special resolution:
(a) the general authority is limited to a maximum of 15% of the
company`s issued share capital; and
(b) any repurchase may not be made at a price greater than 10%
above the weighted average of the market value of the
ordinary shares for the five business days immediately
preceding the date of such repurchase.
A maximum of 15,000,000 ordinary shares could be repurchased in terms of the
general authority obtained from shareholders.
3. IMPLEMENTATION
Details are as follows:-
Total number of ordinary shares repurchased 3,111,877
Total value of ordinary shares repurchased R21,650,321
Highest price paid per ordinary share R8.29
Lowest price paid per ordinary share R6.67
Average price paid per ordinary share R6.96
including costs
The number of ordinary shares which may
still be repurchased by the company in 11,888,123
terms of the general authority
Ordinary shares in issue on 30 September 100,000,000
2007
Ordinary shares in issue on date of this 100,000,000
announcement
4. SOURCE OF FUNDS
Repurchases to date have been, and future repurchases will also be, funded
from available cash resources.
5. OPINION OF THE DIRECTORS
The directors of Kelly Group have considered the impact of the repurchases
and are of the opinion that:-
5.1 the company and the group will be able, in the ordinary course of
business, to pay its debts for a period of 12 months from the date of this
announcement;
5.2 the assets of the company and the group are in excess of the
liabilities, measured in accordance with the accounting policies used in
the audited annual financial statements for the year ended 30 September
2007;
5.3 the ordinary share capital and reserves of the company and the group
will be adequate for a period of 12 months from the date of this
announcement; and
5.4 the working capital of the company and the group will be adequate for
a period of 12 months from the date of this announcement.
6. FINANCIAL EFFECTS
The financial effects of the repurchases are as follows:
The table below sets out the pro forma financial effects on Kelly Group of
the repurchase based on the last published interim results of the company
on 31 March 2008. These financial effects are the responsibility of the
directors of the company, are prepared for illustrative purposes only and
because of their nature, may not fairly present the financial position,
changes in equity, results of operations or cash flows of the company,
after the repurchase.
Before After % Change
(1) (2)
Earnings per share (cents) 38.55 39.77 3.06
Headline earnings per share 38.55 39.77 3.06
(cents)
Net asset value per share 174.91 157.35 (11.16)
(cents)
Tangible net asset value per 25.16 2.55 (887.21)
share (cents)
Notes:
1. Based on Kelly Group`s interim results for the six months ended 31 March
2008.
2. The financial effects are calculated based on the assumption that the
repurchases had been carried out on 1 October 2007 and that the shares
acquired were included in treasury stock from that date.
3. Interest is earned at an average rate of 9.25% on positive cash balances.
7. JSE LISTING
As all the ordinary shares have been repurchased by a wholly-owned
subsidiary of the Kelly Group, none of the ordinary shares will be
cancelled nor will the JSE listing in respect of those shares be
terminated.
Sandton
17 July 2008
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 17/07/2008 16:41:02 Produced by the JSE SENS Department.
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