| Mon 4 Aug 2008, 11:33 | | VLE - Value Group Limited - Repurchase of ordinary shares in Value |
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VLE
VLE
VLE - Value Group Limited - 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 6,308,679 ordinary shares,
equivalent to 3,07% of the issued share capital at the time of the granting of
the general authority, for the total consideration of R13,361,219. The
repurchases were carried out between
20 May 2008 and 1 August 2008. The highest price paid was R2.25 per share and
the lowest price paid was R1.85 per share. The average price paid was R2.10 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 20,153,991 ordinary shares, equivalent to 10.3% of the total
number of shares in issue at 1 August 2008.
To date, the total number of ordinary shares repurchased since the granting of
the general authority amounts to 20,965,817 for a total consideration of
R41,028,308. These repurchases equate to 10.2% of the issued share capital at
the time of the general authority grant. The highest price paid was R2.25 per
share and the lowest price paid was R1.76 per share. The average price paid was
R1.94.
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 reviewed results
for the 12 month period ended 29 February 2008.
- 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
Reviewed
results as
reported for Proforma %
the year ended (cents) Change
29 February
2008 (cents)
Basic earnings per share 24,3 25,6 5,3
Headline earnings per 25,8 27,3 5,8
share
Diluted basic earnings 24,7 24,9 0,8
per share
Diluted headline 26,2 26,6 1,5
earnings per share
Tangible net asset value 203,3 203,5 0,1
per share
Net asset value per 203,3 203,5 0,1
share
Assumptions:
The proforma financial effects are calculated on Value`s reviewed results for
the 12 month period ended 29 February 2008, assuming:
The accounting policies employed by Value for the reviewed 12 month period ended
29 February 2008 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 6,7% per annum.
The calculations have been based on a weighted average number of shares in issue
of 181,054,529 and a fully diluted weighted average number of shares in issue of
186,303,670.
For the purposes of calculating the net asset and tangible net asset values, it
was assumed that the repurchases were carried out on 29 February 2008, 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
prior and subsequent to 29 February 2008.
JSE Listing
To date, 20,965,817 ordinary shares have been repurchased since the granting of
the general authority. 9,968,294 of these ordinary shares were cancelled and
delisted on 27 June 2008. 4,688,844 ordinary shares were transferred to the
Value Group Share Incentive Scheme and the remaining balance of 6,308,679
ordinary shares are currently being hold by a subsidiary of Value as treasury
shares.
Johannesburg
4 August 2008
Sponsor: Investec Bank Limited
Date: 04/08/2008 11:33:01 Produced by the JSE SENS Department.
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