| Tue 9 Feb 2010, 11:10 | | HUG - Huge Group Limited - General repurchase of shares |
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HUG
HUG
HUG - Huge Group Limited - General repurchase of shares
HUGE GROUP LIMITED
(Registration number 2006/023587/06)
Share code: HUG ISIN: ZAE000102042
("Huge" or "the Group" or "the company")
GENERAL REPURCHASE OF SHARES
Shareholders are advised that the company has been repurchasing its securities
under its general authority to repurchase up to 20% of its issued securities as
approved by shareholders in general meeting on Friday, 27 November 2009. On
Monday, 01 February 2010, the company purchased securities, reaching 3.06% of
its securities in issue at the date of shareholder approval.
The dates of repurchase as set out below:
Dates of repurchase
4 December 2009
7 December 2009
8 December 2009
9 December 2009
10 December 2009
14 December 2009
15 December 2009
20 January 2010
21 January 2010
1 February 2010
2 February 2010
3 February 2010
The highest and lowest price paid during the period was 79.53 cents and 49.94
cents respectively, with a total of 3 416 026 shares repurchased at a total
value of R1 872 738.10. The shares were repurchased utilising internal cash
flows of the group.
The remaining number of shares available for repurchase in accordance with the
general authority is 18 935 973 shares or 16.94%.
The directors of Huge, after considering the effect of the above repurchase, are
of the view that the company and the group:
- will be able, in the ordinary course of business, to pays its debts;
- that the assets will be in excess of the liabilities; and
- the share capital and reserves will be adequate for ordinary business
purposes; and
- the working capital will be adequate for ordinary business purposes,
for a period of twelve months after the date of this announcement.
The requirements of paragraph 5.72 of the JSE Listings Requirements have been
complied with.
The pro forma effects of the repurchase on earnings per share, headline
earnings per share, net asset value per share and net tangible asset value
per share is set out below:
Unaudited Pro forma - % change
Interim After
31 August repurchase
2009
Basic loss per share (5.43) (5.67) 4.4%
Headline loss per share (5.46) (5.71) 4.6%
Net asset value per share 228.57 234.28 2.5%
Net tangible asset value per share 18.07 16.78 (7.1%)
The shares have been repurchased as treasury shares by a subsidiary of Huge
and will not be cancelled.
Huge listed on the Alternative Exchange of the JSE Limited on 8 August 2007.
In terms of its prospectus dated 1 August 2007 the company privately placed 50
000 000 ordinary shares of 0.01 cents each at an issue price of 250 cents
per share increasing the number of ordinary shares in issue to 99 646 601.
In the period between listing and 1 February 2010 the company has acquired
(on a net basis of acquisitions less issues,) exposure to contracts for
difference and single stock futures over the ordinary shares of Huge, and
has also repurchased ordinary shares to be held as treasury shares. This is
represented by a net quantity of 9 259 203 ordinary shares at an average
acquisition price of approximately 172.83 cents per share thereby giving the
company the future prospect of reducing the number of ordinary shares in issue
to 90 387 398.
The implied aggregate gain (excluding implied interest gains) achieved from
these corporate finance activities, being the differential between the original
issue price of 250 cents per share and the net acquisition price of 172.83
cents per share is approximately R7 145 327.
Had the company reduced the number of shares issued at the time of listing
by 9 259 203 ordinary shares and replaced this with a term loan in the amount
of R23 148 007.50 (being 9 259 203 ordinary shares multiplied by the issue
price of 250 cents per share) with a single bullet payment on termination,
and assuming a date of repayment of 1 February 2010, the company would have
incurred interest (at the prime rate, and compounded monthly) of R9 143 899.
The cumulative total benefit to shareholders from these corporate finance
activities is therefore approximately R16 289 286.
Johannesburg
09 February 2010
Designated Advisor
Arcay Moela Sponsors (Proprietary) Limited
Date: 09/02/2010 11:10:03 Produced by the JSE SENS Department.
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