| Thu 18 Nov 2010, 7:07 | | ILV - Illovo Sugar Limited - Capital reduction out of share premium in respect |
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ILV
ILV
ILV - Illovo Sugar Limited - Capital reduction out of share premium in respect
of the six months ended 30 September 2010
ILLOVO SUGAR LIMITED
(Incorporated in the Republic of South Africa)
Company registration number 1906/000622/06
Share Code: ILV
ISIN: ZAE000083846
("Illovo" or "the Company")
CAPITAL REDUCTION OUT OF SHARE PREMIUM IN RESPECT OF THE SIX MONTHS ENDED 30
SEPTEMBER 2010
As announced in the results announcement on SENS today, the board of directors
has approved a cash distribution (in lieu of the interim dividend) by way of a
reduction of capital out of share premium of 22.0 cents per share, for the six
months ended 30 September 2010, to Illovo shareholders recorded in the register
on Friday, 7 January 2011 ("the Distribution").
In compliance with the requirements of Strate, the electronic settlement and
custody system used by the JSE Limited, the Company has determined the following
salient dates for the payment of the Distribution:
Last day to trade cum the Friday,31 December 2010
Distribution
Shares commence trading ex the Monday, 3 January 2011
Distribution
Record date Friday, 7 January 2011
Payment of interim Distribution Monday, 10 January 2011
Illovo shareholders will not be permitted to dematerialise / rematerialise their
shares between Monday, 3 January 2011 and Friday, 7 January 20110, both days
inclusive.
PRO FORMA FINANCIAL EFFECTS OF DISTRIBUTION OUT OF SHARE PREMIUM
The illustrative pro forma financial effects set out below have been prepared to
assist Illovo shareholders to assess the impact of the specific payment on the
net asset value ("NAV") and the tangible net asset value ("TNAV") per ordinary
share. The material assumptions are set out in the notes following the table.
The pro forma financial effects are the responsibility of the directors and are
provided for illustrative purposes only.
Shareholders are advised that, because the Distribution is being made in lieu of
an interim dividend that would have been paid had no capital been available for
distribution, there will be no additional reduction in the cash and cash
equivalents and equity attributable to ordinary shareholders of the Company.
The financial effects have been prepared for illustrative purposes only, and
because of their nature, may not give a fair presentation of Illovo`s financial
position, changes in equity, results of operations or cash flows.
Actual Impact of Proforma
before the proposed after the
Distribution Distribution Distribution
(1) (2)
Cash and cash 557.8 (101.1) 456.7
equivalents (R million)
Total equity (3)(R 6,343.6 (101.1) 6,242.5
million)
NAV (4) (cents per 1,380.8 - 1,358.8
share)
TNAV (4) cents per 1,342.8 - 1,320.8
share)
(1) As per the published unaudited interim results of Illovo for the period
ended 30 September 2010.
(2) Adjustments to the cash and cash equivalents and total equity were made on
the assumption that the distribution to shareholders of 22.0 cents per share was
paid on 30 September 2010.
(3) Total equity comprises the following line items:
Actual Impact of Proforma
before the proposed after the
Distribution Distribution Distribution
(1) (2)
Share Capital 18.4 - 18.4
Share Premium 2,927.1 - 2,927.1
Share-based payments 13.1 - 13.1
reserve
Non-distributable 86.2 - 86.2
reserves
Distribution reserve 101.1 (101.1) -
Retained earnings 2,347.5 - 2,347.5
Non-controlling 850.2 - 850.2
interest
Total equity 6,343.6 (101.1) 6,242.5
(4) The calculation of NAV per share and TNAV per share as at 30 September 2010
has been based on 459 421 533 ordinary shares in issue. The Total equity used in
the calculation of TNAV per share is calculated as set out below:
Total equity 6,343.6 (101.1) 6,242.5
Intangible assets (174.4) - (174.4)
6,169.2 (101.1) 6,068.1
For income tax purposes, shareholders are advised that the Distribution will be
regarded as a return of capital and therefore consideration should be given to
the potential capital gains tax consequences. Illovo shareholders are,
therefore, advised to consult their tax advisors with regard to how they may be
impacted by the Distribution.
On behalf of the Board
G D Knox
Company Secretary
Mount Edgecombe
Sponsor:
J.P. Morgan Equities
18 November 2011
Date: 18/11/2010 07:07:01 Produced by the JSE SENS Department.
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