| Fri 8 Jul 2011, 17:45 | | HUG - Huge - Pro Forma Financial Effects of the Disposal of Telepassport Namibia |
|
HUG
HUG
HUG - Huge - Pro Forma Financial Effects of the Disposal of Telepassport Namibia
and Withdrawal of Cautionary Announcement
HUGE GROUP LIMITED
(Registration number 2006/023587/06)
Share code: HUG ISIN: ZAE000102042
("Huge" or "the Group" or "the company")
PRO FORMA FINANCIAL EFFECTS OF THE DISPOSAL OF TELEPASSPORT NAMIBIA AND
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the cautionary announcement dated 29 March 2011,
and the subsequent renewals thereof on 10 May 2011 and 7 July 2011 with regard
to the disposal of a 49% interest in TelePassport Communications Proprietary
Limited ("TelePassport" or "the associate") ("the sale transaction").
The unaudited pro forma financial effects have been prepared and are presented
in the table below. The unaudited pro forma financial effects have been
prepared to illustrate the impact of the sale transaction on the unaudited,
published financial information of Huge for the year ended 28 February 2011, had
the sale transaction occurred on 1 March 2010 for income statement purposes and
on 28 February 2011 for balance sheet purposes.
The unaudited pro forma financial effects set out below are the responsibility
of the directors of the company and have been prepared in accordance with
International Financial Reporting Standards and by applying the accounting
policies of Huge. The unaudited pro forma financial effects have been prepared
for illustrative purposes only and because of their nature may not fairly
present the financial position, changes in equity, results of operations or cash
flows of Huge after the sale transaction.
The pro forma figures have been reviewed by the reporting accountants for the
transaction, BDO Corporate Finance and their review report will be included in
the circular to shareholders currently being prepared in this regard.
Before the sale After the sale Percentage
transaction transaction change
Reviewed Pro-forma
28 February 2011
Basic (loss) / earnings (15.34) (14.68) 4.25
per share (cents)
Headline (loss) / (15.41) (18.05) (17.07)
earnings per share
(cents)
Net asset value per 245.54 252.34 2.77
share (cents)
Net tangible asset value 2.72 0.32 (88.21)
per share (cents)
Total number of shares 95,901 92,401 (3.65)
in issue (`000)
Weighted average number 97,663 94,163 (3.58)
of shares in issue
(`000)
NOTES:
1. The "Before the sale transaction" basic and headline loss per share and the
net asset value and net tangible asset value per share have been extracted
without adjustment from the unaudited, published results of Huge for the
year ended 28 February 2011.
2. The "After the sale transaction"" assumes:
a. The sale of the associate with effect from 1 March 2010 for the
purposes of earnings and headline earnings per share and with effect
from 28 February 2011 for the purposes of net asset value and net
tangible asset value per share;
b. Recognition of the profit on sale of the associate, being the excess
of the expected proceeds on the sale of the associate over the
carrying value of the associate on 28 February 2011;
c. Settlement of the expected proceeds of R4.9 million on the sale of the
associate by the delivery of 3 500 000 Huge ordinary shares by the
purchaser of TelePassport to Huge Telecom Proprietary Limited; and
d. the payment of transaction costs in respect of the sale of the
associate of a maximum of R 500 000.
WITHDRAWAL OF CAUTIONARY
Consequent to the publication of the above pro forma financial effects,
shareholders are advised that the cautionary announcement is withdrawn.
Woodmead
8 July 2011
Designated Advisor
Arcay Moela Sponsors (Proprietary) Limited
Date: 08/07/2011 17:45:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
