| Thu 8 Mar 2001, 0:00 | | Iota - Repurchase Of Shares On The Open Market |
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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
Further to the announcement dated 7 February 2001, IOTA Corporate Finance
(Proprietary) Limited is authorised to announce that IOTA Financial Services
Limited ("IOTA") has repurchased a further 2,224,700 of its shares on the open
market ("collectively, the share repurchase") through its wholly-owned
subsidiary IOTA Investment Services (Proprietary)Limited. In accordance with
the general authority granted by shareholders at a general meeting held on 1
December 2000 ("the general repurchase"), the total number of shares purchased
to date amounts to 4,699,700 ordinary shares, which represents 6,5% of the
company's issued share capital.
2. Share repurchase
Total number of shares
purchased 2,224,700 3,1% of the company's
share capital
Total value of
shares repurchased R2,720,350
Highest price paid 135 cents
Lowest price paid 120 cents
Period of repurchases 16 February 2001 - 5 March 2001
Number of shares
which may still 9,852,370 13,5% of the company's issued
be repurchased by share capital
the company in
terms of the general
authority (000)
3. Source of funds
The share repurchase has been funded through cash flows generated in the
ordinary course of business.
4. The financial effects of the share repurchase
The table below indicates the financial effects of the share repurchase on the
audited financial statements of IOTA for the year ended 30 April 2000, had the
specific and general repurchase of IOTA shares as noted in the announcement
dated 7 February 2001 been effected on 1 May 1999 for earnings and headline
earnings purposes and on 30 April 2000 for net asset value and tangible net
asset value purposes.
After the
Before the general and After the
repurchase specific share %
(cents)(1) repurchase(2) repurchase Change
Earnings per share 55.0 64.4 66.7 3.6
Fully diluted headline
earnings per share 58.1 68.1 70.5 3.6
Net asset value per share 202.4 207.4 210.5 1.5
Net tangible asset value
per share 193.1 196.6 199.2 1.3
Number of shares used (000) 76,387 65,234 63,009
Notes:
(1) Extracted from audited financial statements for the year ended 30 April
2000.
(2) Extracted from the announcement dated 7 February 2001.
5. Opinion of directors
The directors of IOTA, having considered the effect of the share repurchase,
believe that:
- the company and the group will be able to pay their debts in the ordinary
course of business 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 will be
adequate for a period of 12 months after the date of this announcement; and
- the working capital of the company and the group will be adequate for a
period of 12 months after the date of this announcement.
6. Treatment of the shares acquired
The share repurchase has been effected in terms of Section 89 of the Companies
Amendment Act, No. 37 of 1999. Accordingly, the IOTA shares will be held by
IOTA Investment Services (Proprietary) Limited as treasury shares and will
attach no voting rights. These shares will also be disregarded for the purposes
of calculating earnings per share and net asset value per share.
As these IOTA shares will not be cancelled, application will not be made to the
JSE Securities Exchange South Africa for the reduction in the number of IOTA
shares listed.
Johannesburg
8 March 2001
Corporate adviser
IOTA
Corporate Finance (Pty)Limited
Reg No. 2000/010655/07
Sponsor
pricewaterhousecoopers
Corporate Finance
(Registration number 1970/003711/07)
