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IOTA FINANCIAL SERVICES LIMITED
(Registration number 1968/012195/06)
(Incorporated in the Republic of South Africa)
("IOTA" or "the company")
Repurchase of shares on the open market
1. Introduction
IOTA Financial Services has purchased 2,475,000 of its own shares on the open
market through its wholly-owned subsidiary IOTA Investment Services
(Proprietary) Limited, acting on the general authority granted by shareholders
at a general meeting held on 1 December 2000 ("the general repurchase"). The
general repurchase has been over and above the specific repurchase that was
approved by shareholders at a general meeting held on 19 January 2001 ("the
specific repurchase").The effects of both these repurchases are addressed under
point 4.
2. Repurchase of shares
Total number of
shares repurchased 2,475,000 3,4% of the company's
share capital
Total value of
shares repurchased R3,717,015
Highest price paid 160 cents
Lowest price paid 136 cents
Period of repurchases 11 December 2000 - 5 February 2001
Number of shares
which may still 12,077,070 16,6% of the company's
be repurchased by share capital in issue
the company in
terms of the
general authority
3. Source of funds
Funds generated in the ordinary course of business were used to fund the share
repurchases.
4. The financial effects of the proposed repurchase of shares
Based on the company's audited financial statements for the year ended 30 April
2000, and assuming that the specific and general repurchases of IOTA shares had
been on 1 May 1999, the effect on the earnings, headline earnings, net asset
value per share and tangible net asset value per share would have been as
follows:
Before the After the After the
repurchase general specific After both %
(cents) repurchase repurchase repurchases Change
Earnings
per share 55.0 56.9 62.0 64.4 17.1
Fully diluted
headline
earnings
per share 58.1 60.0 65.6 68.1 17.1
Net asset
value 202.4 204.1 205.4 207.4 2.5
Net tangible
asset value 193.1 194.5 194.9 196.6 1.8
Number of
shares
used (000) 76 387 73 912 67 709 65 234 (14.6)
5. Opinion of directors
The directors, having considered the effect of such acquisition of shares
issued by the company consider that there are reasonable grounds for believing
that:
* the company and the group will be able in the ordinary course of business to
pay its debts for a period of 12 months after the date of this announcement;
* the assets of the company and the group will be in excess of the liabilities
of the company and the group for a period of 12 months after the date of this
announcement. For this purpose, the assets and liabilities should be recognised
and measured in accordance with the accounting policies used in the latest
audited annual group financial statements;
* the ordinary capital and reserves of the company and the group for a period
of 12 months after the date of this announcement shall be adequate; and
* the working capital of the company and the group for a period of 12 months
after the date of this announcement shall be adequate.
6. Treatment of the shares acquired
The IOTA shares acquired in terms of the general repurchase will be treated as
treasury shares. As such they will have no voting rights and will be
disregarded in calculating earnings and net asset value per share.
7. JSE listing
As the shares acquired in terms of the general repurchase were acquired by an
IOTA subsidiary (and not by IOTA itself), application will not be made to the
JSE Securities Exchange South Africa for the reduction in the number of IOTA
shares listed.
Johannesburg
7 February 2001
Corporate adviser
IOTA Corporate Finance (Pty) Limited
(Reg No. 2000/010655/07)
Sponsoring broker
S.P. Reid & Mackeurtan (Pty) Ltd
Member of the JSE Securities Exchange South Africa
(Reg No. 1974/000041/21)
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