| Thu 27 Nov 2008, 17:00 | | NWL - Nu-World - Repurchase Of Ordinary Shares In Nu-World Holdings Limited |
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NWL
NWL
NWL - Nu-World - Repurchase Of Ordinary Shares In Nu-World Holdings Limited
NU-WORLD HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1968/002490/06)
JSE Code: NWL ISIN: ZAE000005070
("Nu-World" or "the Company")
REPURCHASE OF ORDINARY SHARES IN NU-WORLD HOLDINGS LIMITED
Introduction
In terms of a general authority granted to Nu-World Holdings Limited ("Nu-
World") to repurchase its ordinary shares by a special resolution passed by Nu-
World shareholders on 20 February 2008 ("the general authority"), a maximum of
2,264,647 ordinary shares (being 10% of the issued share capital at the time of
the granting of the general authority) could be acquired.
Implementation
In terms of paragraphs 5.79 and 11.27 of the Listings Requirements of the JSE
Limited ("JSE"), Nu-World announces that it has acquired 679,394 ordinary
shares, equivalent to 3% of the Issued Share Capital, for a total consideration
of R10,369,827, in the open market. The repurchases were carried out between 25
February 2008 and 18 November 2008. The majority of shares were purchased in
July 2008.
The highest price paid was R17,60 per share and the lowest price paid was R13,95
per share. The average price paid was R15,26 per share.
The requirements of paragraph 5.72 of the JSE Listings Requirements have been
complied with in the repurchasing of these shares.
The extent of the authority outstanding is 1,585,253 ordinary shares, equivalent
to 7,0% of the Issued Share Capital.
Source of funds
Repurchases to date have been funded from available cash and it is intended that
all future purchases will also be funded from available cash.
Opinion of the directors
The directors of Nu-World have considered the impact of the share repurchases
and are of the opinion that:
Nu-World and its subsidiaries will be able, in the ordinary course of business,
to pay its debt for a period of 12 months from the date of this announcement.
The consolidated assets of Nu-World and its subsidiaries are in excess of the
consolidated liabilities, measured in accordance with the accounting policies
used in the audited results for the year ended 31 August 2008.
The ordinary share capital and consolidated reserves of Nu-World and its
subsidiaries will be adequate for a period of 12 months from the date of this
announcement.
The working capital of Nu-World and its subsidiaries will be adequate for a
period of 12 months from the date of this announcement.
Effect on earnings and net asset value
The pro forma financial effects on the share repurchases on Nu-World are the
responsibility of the board. The unaudited pro forma financial effects are
presented for illustrative purposes only and because of their nature may not
give a fair reflection of Nu-World`s results and financial position after the
repurchases.
Before After Change
(cents) (cents)
Earnings per share 189,8 192,2 1,3%
Headline earnings per 205,5 208,4 1,4%
share
Net asset value per share 2592,8 2589,1 (0,1%)
Net Tangible asset value 2346,2 2342,5 (0,2%)
per share
The pro forma financial effects ("after") are calculated on Nu-World audited
results for the year ended 31 August 2008, assuming:
The accounting policies employed by Nu-World for the year ended 31 August 2008
have been applied in making these calculations.
For the purposes of calculating the earnings and headline earnings related
figures, it was assumed that all the repurchases were carried out on or before 1
September 2007.
All the repurchases were financed by excess cash on hand which interest was
received at an after tax rate of 7,7%.
The calculations have been based on weighted average number of shares in issue
of 21,696,807 (21,214,613 after repurchase) as at 31 August 2008.
For the purposes of calculating the net asset and net tangible assets value, it
was assumed that the repurchases were carried out on 31 August 2007. The
calculation is based on 21,214,613 ordinary share issued being the number of
shares in issue at 31 August 2008 adjusted by the repurchases made subsequent to
the granting of the general authority by shareholders on 20 February 2008.
JSE Limited Listing
All the shares repurchased will remain in issue and be held as treasury shares
of Nu-World.
Conclusion
The board will continue to repurchase securities as and when deemed appropriate.
27 November 2008
Johannesburg
Sponsor:
Sasfin Capital
(a division of Sasfin Bank Limited)
Date: 27/11/2008 17:00:01 Produced by the JSE SENS Department.
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