| Wed 6 Jun 2001, 0:00 | | Repurchase By Eoh Of Its Iwn Shares |
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Enterprise Outsourcing Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/014669/06)
("EOH" or "the Company")
Repurchase by EOH of its own shares
1. INTRODUCTION
BoE Merchant Bank is authorised to announce that EOH, pursuant to the
general authority to repurchase shares ("the authority") granted to it by
shareholders in a general meeting on 30 January 2001, has, through a 100%
owned subsidiary, repurchased 1 553 200 of its own shares ("the share
repurchase") on the open market of the JSE Securities Exchange South Africa
("JSE"). This amounts to 3,09% of the issued ordinary shares of 50 277 747
at the time the authority was granted.
2. EXTENT OF THE AUTHORITY
In terms of the authority:
- any general repurchase by the Company shall not, in aggregate in any one
financial year, exceed 20% of the Company's issued share capital of that
class at the date on which the authority was granted; and - in determining
the price at which ordinary shares issued by the Company are acquired by it
or by its subsidiary, the maximum premium at which such shares may be
acquired will be 10% of the weighted average of the market value for such
shares for the five business days immediately preceding the date of
repurchase of such shares.
3. DETAILS OF THE REPURCHASE
3.1 Dates
The share repurchase was concluded on a day-to-day basis as market
conditions allowed between 6 February 2001 and 1 June 2001.
3.2 Price paid
The highest price paid for the shares was 135 cents and the lowest was 89
cents.
3.3 Number and monetary value
1 553 200 shares were repurchased for a total consideration of R1 582 027.
3.4 Extent of authority outstanding
The extent of the authority outstanding after the share repurchase is 8 502
349 shares, equivalent to 16,91% of the total share capital on the date on
which the authority was granted.
3.5 Source of funds
The funds utilised to give effect to the repurchase were sourced from
existing cash resources.
4. OPINION OF THE DIRECTORS
The directors of the Company are of the opinion that, after considering the
effect of the share repurchase:
- the Company will be able to settle liabilities that become due for payment
for a period of 12 months after the date of this announcement;
- the assets of the Company will exceed its liabilities, as measured in
accordance with the accounting polices used in the Company's latest audited
financial statements, for a period of 12 months from the date of this
announcement;
- the working capital of the Company and the group will be adequate for a
period of 12 months from the date of this announcement; and
- the ordinary share capital and reserves of the Company and the group will
be adequate for a period of 12 months from the date of this announcement.
5. FINANCIAL EFFECTS
The table below sets out the effects of the share repurchase on the earnings
per share ("EPS"), headline earnings per share ("HEPS"), net asset value
("NAV") and net tangible asset value per share ("NTAV") of the Company based
on the interim financial results for the six months ended 31 January 2001,
being the most recent reporting period. The EPS, HEPS, NAV and NTAV have
been calculated by assuming:
- that the share repurchase was concluded on 1 August 2000;
- that the funds utilised to repurchase the shares were sourced from cash on
hand which on which interest of 9% was receivable;
- a company tax rate of 30%; and
- by applying the same accounting policies used in the Company's latest
audited annual financial statements.
Percentage
Before After Increase/
(cents) (cents) (Decrease)
EPS 9,91 10,12 2,1
HEPS 10,39 10,62 2,2
NAV 49,96 48,21 (3,5)
NTAV 16,88 14,08 (16,6)
Shares in issue 50 277 747 48 724 547 (3,1)
Note: The weighted average number of shares in issue at 31 January 2001 was
50 435 000.
6. CANCELLATION OF SECURITIES
The shares repurchased will be held in a wholly-owned subsidiary of EOH and
will not be cancelled.
6 June 2001
Merchant bank
BoE Merchant Bank
A division of BoE Bank Limited
Co. Reg. No. 1951/000847/06
Sponsor
BoE Securities (Pty)Ltd
Member of the JSE Securities Exchange South Africa
Co. Reg. No. 1995/012240/07
