| Wed 7 Mar 2001, 0:00 | | Brandcorp: Results Of Repurchase Of Ordinary Share |
|
BRANDCORP HOLDINGS LIMITED
(Registration number 1992/006647/06)
(Incorporated in the Republic of South Africa)
("Brandcorp" or "the company")
Results of repurchase of ordinary shares by way of a general authority
1. Introduction
HSBC Securities (South Africa) (Pty) Limited is authorised to announce that
Brandcorp has, cumulatively, repurchased 15 306 032 (8,9%) of its ordinary
shares on the open market of the JSE Securities Exchange South Africa ("JSE")
in accordance with the general authority granted to the company at the annual
general meeting of Brandcorp shareholders held on 6 December 2000 ("the share
repurchase").
2. Details of repurchase of ordinary shares
Period of repurchase of ordinary shares: 8 December 2000 - 5 March 2001
Highest price paid for ordinary shares
repurchased: 73 cents
Lowest price paid for ordinary shares repurchased: 62 cents
Number of ordinary shares repurchased: 15 306 032
Value of ordinary shares repurchased: R10 992 399
Extent of general authority outstanding: The full authority has been
utilised, for the current
financial year.
3. Source of funds
Share repurchases to date have been funded from available cash resources and
the intention is that future repurchases will also be funded from available
cash.
4. Opinions
The directors of Brandcorp have considered the impact of the share repurchase
and are unanimously of the opinion that:
* the company and the group will be able in the ordinary course of business to
pay their debts for a period of 12 months from the date of this announcement;
* the assets of the company and the group fairly valued in accordance with
Statements of Generally Accepted Accounting Practice, will remain in excess of
the liabilities of the company and the group for a period of 12 months from the
date of this announcement;
* the issued ordinary capital and reserves of the company and the group are
adequate for the purposes of business for a period of 12 months from the date
of this announcement; and
* the working capital available to the company and the group is sufficient for
the company's and the group's requirements for the period of 12 months from the
date of this announcement.
5. Financial effects
The table below sets out the financial effects of the share repurchase on
Brandcorp's earnings per share, net asset value per share and tangible net
asset value per share:
% Increase/
Before After (Decrease)
Earnings per share (cents)*
10,6 12,7 19,8
Headline earnings per share (cents)* 9,0 10,1 12,2
Net asset value per share (cents) 126,2 129,7 2,8
Tangible net asset value
per share (cents) 126,2 129,7 2,8
Number of ordinary shares in issue** 149 460 387 136 898 755 (8,4)
* The pro forma financial effects are calculated on the Brandcorp group's
financial statements for the six month period ended 31 December 2000, being the
most recent reporting period and including the effects of the shares
repurchased as per the announcements dated 18 October 2000 and 21 November
2000. The calculations assume that the repurchases had been made on 1 July 2000
and the interest income was reduced by 9,5% per annum calculated on the amount
of the repurchase price. The accounting policies employed by the group for the
financial year ended 30 June 2000 have been applied in making these
calculations.
** As the ordinary shares are being repurchased by Brandcorp such shares shall
be cancelled and the share capital reduced. For the purposes of calculating
earnings per share, headline earnings per share and tangible net asset value
per share, the number of ordinary shares in issue has been reduced by the
number of ordinary shares repurchased. From the period 8 December 2000 to 31
December 2000 being the effective date in the "Before" column, 2 744 400 shares
were purchased.
6. Ordinary shares listed on the JSE
As all the 15 306 032 shares have been repurchased by Brandcorp, an application
will be made to the JSE for the termination of the listing of these shares.
7 March 2001
Johannesburg
Sponsor
HSBC Investment Services (Africa) (Pty) Limited
Reg. No. 1984/001736/07
Attorneys
FRRW
Fluxman Rabinowitz - Raphaely Weiner Inc. Attorneys
www.frrw.co.za
