| Thu 4 Dec 2008, 8:38 | | UNI - Universal - General Repurchase Of Shares |
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UNI
UNI
UNI - Universal - General Repurchase Of Shares
UNIVERSAL INDUSTRIES CORPORATION LIMITED
(formerly Universal Food Systems (Proprietary) Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1996/004343/06)
JSE code: UNI: ZAE000110664
("Universal" or "the company")
GENERAL REPURCHASE OF SHARES
Shareholders are advised that Universal has cumulatively repurchased 19,700,000
of its own shares (comprising 4.2% of its issued share capital) out of the
company`s available cash resources. The shares were repurchased for an aggregate
price of R11,915,000 in the following tranches:
- 200,000 on 6 October 2008 at 70 cents per share;
- 1,000,000 on 17 October 2008 at 65 cents per share;
- 384,467 on 22 October 2008 at 65 cents per share;
- 615,533 on 23 October 2008 at 65 cents per share;
- 500,000 on 24 October 2008 at 55 cents per share; and
- 17,000,000 on 2 December 2008 at 60 cents per share.
The repurchases were in terms of the general authority granted by shareholders
on 25 June 2008 and were effected through the order book operated by the JSE
trading system without any prior understanding or arrangement between the
company and the counter parties. The shares have or will be de-listed and
cancelled on or before Friday, 12 December 2008.
Universal is entitled to repurchase a further 74,100,700 shares (15.8% of the
shares in issue as at the date of the authority) in terms of the current general
authority, which is valid until Universal`s next annual general meeting.
OPINION OF THE BOARD OF UNIVERSAL
The board of Universal has considered the effect of the repurchases and is of
the opinion that, for a period of 12 months following the date of this
announcement:
- the company and the group will be able to repay their debts, in the
ordinary course of business;
- the assets of the company and the group, will be in excess of the
liabilities of the company and the group.
- the company`s and the group`s ordinary capital and reserves will be
adequate for ordinary business purposes; and
- the company and the group will have sufficient working capital for ordinary
business purposes.
FINANCIAL EFFECTS OF THE REPURCHASES
The unaudited pro forma financial effects as set out below have been prepared to
assist Universal shareholders in assessing the impact of the repurchases on
earnings per share, headline earnings per share, net asset value per share and
net tangible asset value per share of Universal as at and for the six months
ended 30 June 2008.
These unaudited pro forma financial effects have been prepared for illustrative
purposes and because of their nature, may not fairly present Universal`s
financial position after the repurchases.
The directors of Universal are responsible for the preparation of the financial
effects and they have not been reviewed by the auditors.
Before the After the %
repurchases repurchases change
(cents) (cents)
Earnings and headline earnings 5.1 5.3 2.4%
per share
Net asset value per share 59.6 59.5 (0.1%)
Tangible net asset value per 21.3 19.6 (8.2%)
share
NOTES AND ASSUMPTIONS
- The figures set out in the "Before the repurchases" column above have been
extracted from unaudited interim results for the six months ended
30 June 2008.
- The repurchases are assumed to have been implemented on 1 January 2008 for
earnings and headline earnings per share purposes and on 30 June 2008 for
net asset and tangible net asset value per share purposes.
- It is assumed that the repurchases were funded out of the available cash
resources of the company which were earning interest at an after tax
interest rate of 7.56% per annum.
3 December 2008
Sponsor
Java Capital (Proprietary) Limited
Date: 04/12/2008 08:38:21 Produced by the JSE SENS Department.
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