| Fri 25 May 2001, 0:00 | | Repurchase Of 10% Of Issued Ordinary Shares In Pri |
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Privest Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/013448/06)
("Privest")
REPURCHASE OF 10% OF ISSUED ORDINARY SHARES IN PRIVEST
1. INTRODUCTION
General authority for Privest to repurchase its ordinary shares was granted
in terms of a special resolution passed by Privest shareholders and
registered by the Registrar of Companies on 30 August 2000 ("the general
authority"). A maximum of 15 623 296 ordinary shares could be acquired in
terms of the general authority. It was announced on 11 December 2000 that 7
396 333 ordinary shares, equivalent to 4,73% of the total issued share
capital of Privest, had been purchased by a subsidiary of Privest.-
2. IMPLEMENTATION
As at the date of this announcement, Privest has acquired, in the open
market, a further 8 226 963 ordinary shares, equivalent to 5.27% of the
issued share capital of Privest at 30 August 2000, for a total consideration
of R2.48 million. The highest price paid for the additional ordinary shares
acquired in terms of the general authority was R0.30 per ordinary share and
the lowest R0.23 per ordinary share.
To date, Privest has acquired 15 623 296 ordinary shares, being the maximum
permissable amount in terms of the general authority, for a total
consideration of R5,32 million.
3. SOURCE OF FUNDS
All purchases in terms of the general authority were funded from available
cash.
4. OPINION OF DIRECTORS
Having considered the effect of the purchases in terms of the general
authority, the directors of Privest remain of the opinion that, for a period
of 12 months from the date of this announcement.
-Privest and its subsidiaries will, in the ordinary course of business, be
able to pay their debts;
-the assets of Privest and its subsidiaries fairly valued in acceptance with
General Accepted Accounting Practices will be in excess of the liabilities
of Privest and its subsidiaries;
-the ordinary share capital and consolidated reserves of Privest and its
subsidiaries will be adequate; and
-the working capital of Privest and its subsidiaries will be adequate.-
Effect on headline earnings and net asset value
Per the published unaudited results of Privest for the year ended 28
February 2001, the headline earnings per ordinary share for the year ended
28 February 2001 were 8,54 cents and the net asset value per ordinary share
at 28 February 2001 was 80,8 cents.
14 062 073 of the total ordinary shares acquired in terms of the general
authority were acquired prior to 28 February 2001 and, accordingly, the
headline earnings and net asset value per ordinary share stated above,
include the financial effects of the purchase of 14 062 073 ordinary shares.
On the assumption that the purchase of the balance of 1 561 223 ordinary
shares acquired in terms of the general authority had been carried out on 1
March 2000, it would not have had a material effect on the headline earnings
per ordinary share for the year ended 28 February 2001. On the assumption
that the purchase of the balance of 1 561 223 ordinary shares acquired in
terms of the general authority had been carried out on 28 February 2001 it
would not have had a material effect on the net asset value per ordinary
share at 28 February 2001.
6. Stock exchange listing
The ordinary shares purchased to date in terms of the general authority will
not be cancelled, but will be retained by a wholly owned subsidiary of
Privest. Accordingly, the ordinary shares will continue to be listed on the
JSE Securities Exchange South Africa.
Johannesburg
23 May 2001
Merchant bank Sponsor
Investec Bank Limited Investec Securities Limited
