| Fri 24 Apr 2009, 15:45 | | CAE - Cape Empowerment Trust Limited - Repurchase of ordinary shares in Cape |
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CAE
CAE
CAE - Cape Empowerment Trust Limited - Repurchase of ordinary shares in Cape
Empowerment Trust
Cape Empowerment Trust Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/014606/06)
("Cape Empowerment Trust" or "the company")
Share Code: CAE
ISIN: ZAE000016952
REPURCHASE OF ORDINARY SHARES IN CAPE EMPOWERMENT TRUST
1 Introduction
In terms of a general authority granted to Cape Empowerment Trust to repurchase
its ordinary shares by a special resolution passed by Cape Empowerment Trust
shareholders at the annual general meeting on 28 August 2008 ("the general
authority"), a maximum of 71 504 498 ordinary shares (being 20% of the issued
share capital at the time of the granting of the general authority) could be
acquired. A similar authority was granted at the previous annual general meeting
in 2007.
2 Implementation
In terms of paragraphs 5.79 and 11.27 of the Listings Requirements of the JSE
Limited ("JSE"), Cape Empowerment Trust announces that it has, on a cumulative
basis since 2007, acquired a total of 20 799 379 ordinary shares, equivalent to
5.58% of the issued share capital, for a total consideration of R 13 198 265 ,
in the open market. The repurchases were carried out since 16 October 2007 with
15 584 335 repurchased between 8 April 2009 and 21 April 2009.
The highest price paid was R 2.52 per share and the lowest price paid was 30
cents per share with 15 575 500 shares purchased at 30 cents per share. The
average price paid was 63 cents 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 55 920 163 ordinary shares,
equivalent to 15% of the issued share capital.
3 Source of funds
Repurchases to date have been funded from available resources and it is intended
that any future repurchases will also be funded in a similar manner.
4 Opinion of the directors
The directors of Cape Empowerment Trust have considered the impact of the share
repurchases and are of the opinion that:
* Cape Empowerment Trust and its subsidiaries ("the Group") 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 the Group are in excess of the consolidated
liabilities, measured in accordance with the accounting policies used in
the audited results for the year ended 31 December 2008.
* The ordinary share capital, consolidated reserves and the working capital
of the Group will be adequate for a period of 12 months from the date of
this announcement.
5 Effect on earnings and net asset value
The pro forma financial effects on the share repurchases on Cape Empowerment
Trust 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 Cape Empowerment Trust`s results and financial
position after the repurchases.
Before After Change
(cents) (cents)
Loss per share 91,2 95,7 4,9 %
Headline loss per share 83,9 88,0 4,8 %
Net asset value per share 69,1 71,0 2,7 %
Net Tangible asset value per 62,8 64,3 2,4 %
share
Number of shares in issue -
consolidated (`000) 348 450 332 866
Weighted average number of
shares in issue -
consolidated (`000) 339 180 323 596
The pro forma financial effects ("after") are based on Cape Empowerment Trust
reviewed results for the year ended 31 December 2008, assuming:
* For the purposes of calculating the earnings and headline earnings related
figures, it was assumed that all the repurchases were carried out on 1
January 2008 and on 31 December 2008 for net asset value and tangible net
asset value purposes.
* All the repurchases were funded from existing cash resources on which
interest was earned at an annual after tax rate of 8%.
6 JSE Listing
All the shares repurchased will remain in issue and be held as treasury shares
of Cape Empowerment Trust.
24 April 2009
Johannesburg
Sponsor:
Sasfin Capital
(a division of Sasfin Bank Limited)
Date: 24/04/2009 15:45:02 Produced by the JSE SENS Department.
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