| Thu 25 Nov 2010, 12:57 | | MML - Metmar Limited - General issue of shares for cash by Metmar raises |
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MTA MML
MTA
MML - Metmar Limited - General issue of shares for cash by Metmar raises
R127.6 Million for the company`s various strategic investments
Metmar Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/007269/06)
JSE code: MML & ISIN: ZAE000078747
("Metmar" or "the Company")
GENERAL ISSUE OF SHARES FOR CASH BY METMAR RAISES R127.6 MILLION FOR THE
COMPANY`S VARIOUS STRATEGIC INVESTMENTS
Introduction
At the annual general meeting of the Company held on 11 August 2010, the
requisite majority of Metmar shareholders approved an ordinary
resolution authorising the directors of Metmar to issue shares for cash
in accordance with paragraph 5.52 of the JSE Limited ("JSE") Listings
Requirements ("general authority"). In accordance with this general
authority the Company has successfully placed 30,318,323 ordinary shares
("the placed shares"), equating to 15 percent of the Company`s issued
share capital, thereby raising R127.6 million ("the issue"). The placed
shares are expected to be listed on the JSE with effect from the
commencement of business on or about 30 November 2010. The placed shares
will rank pari passu with the existing ordinary shares of the Company.
In terms of the private placing, Metmar placed 30,318,323 ordinary
shares at an issue price of R4.21 per ordinary share, which represents:
- a 2.92% premium to the 30 day volume weighted average price ("VWAP")
of R4.0906 per ordinary share as at 5 November 2010, being the date when
Metmar`s directors set the issue price; and
- a 7.04% discount to the average 30 day VWAP per ordinary share of
R4.5291 calculated on the dates that the agreements between Metmar and
the subscribing shareholders were concluded, being 16 November 2010, 18
November 2010 and 19 November 2010.
The shares were placed with shareholders, who qualify as public
shareholders as defined in paragraphs 4.25 and 4.26 of the JSE Listings
Requirements.
Application of proceeds
The proceeds of the private placing will be used primarily to fund
Metmar`s proportionate contribution to the capital requirements of the
Company`s various strategic investments.
Financial effects
The table below reflects the unaudited pro forma financial effects of
the above mentioned general issue of shares for cash. The pro forma
financial effects have been prepared for illustrative purposes only and
in terms of the JSE Listings Requirements and therefore, due to their
nature, may not truly reflect Metmar`s financial position or results.
The directors of Metmar are responsible for the preparation of the pro
forma financial effects.
Before the Pro forma Change
issue after the (%)
issue
Basic earnings per
share (cents) 12.0 8.9 (25.8)
Headline earnings
per share (cents) 12.1 9.0 (25.6)
Weighted average
number of shares
in issue 202,122,157 232,440,480 15.0
Net asset value
("NAV") per
share (cents) 227.7 251.3 10.4
Net tangible asset
value ("NTAV") per
share (cents) 193.5 221.5 14.5
Closing number of
shares in issue 202,122,157 232,440,480 15.0
Notes:
I. The "Before the issue" figures are based on Metmar`s
published and unaudited interim results for the six months ended 31
August 2010.
II. The "Pro forma after the issue" column is based on the assumption
that the issue was effective on 1 March 2010 for basic earnings per
share and headline earnings per share. It is assumed that the proceeds
will be utilised for the capital requirements of the Company`s various
strategic investments and will therefore not affect earnings for the
period. Earnings per share, however, will be diluted by the new number
of shares in issue.
III. Basic earnings per share and headline earnings per share have been
adjusted by transaction costs amounting to R3.8 million. As the
transaction costs are non-deductible for tax purposes, no tax effect has
been accounted for.
IV. The "Pro forma after the issue" column is based on the assumption
that the issue was effective on 31 August 2010 for NAV and NTAV
purposes.
Johannesburg
25 November 2010
Corporate advisors Sponsor
Qinisele Resources (Pty) Ltd Barnard Jacobs Mellet
Corporate Finance (Pty) Limited
For further enquiries please contact:
David Ellwood (CEO of Metmar): +27 11 706 3999
Dennis Tucker (Qinisele Resources): +27 82 492 4957
Date: 25/11/2010 12:57:09 Produced by the JSE SENS Department.
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