| Fri 8 Jun 2001, 0:00 | | Repurchase Of Ordinary Shares In Amb |
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AMB HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1995/003054/06)
("AMB" or "the Company")
REPURCHASE OF ORDINARY SHARES IN AMB
1. INTRODUCTION
AMB, acting on the general authority granted by AMB shareholders at the
annual general meeting held on 11 February 2000 ("the first general
authority") has, through African Merchant Bank Limited, a wholly owned
subsidiary, repurchased 323 868 of its own shares on the open market. In
addition, AMB, acting on the general authority granted by AMB shareholders
at the annual general meeting held on 16 February 2001 ("the second general
authority") has, through African Merchant Bank Limited, repurchased another
8 206 584 of its own shares in the open market ("the share repurchase").
2. EXTENT OF THE AUTHORITY TO REPURCHASE SHARES
In terms of the second general authority:
- cumulative repurchases may not exceed 20% of the Company's issued share
capital at the date on which the second general authority was granted; and
-the price paid for each share may not exceed 10% above the weighted average
of the middle market price at which the ordinary shares trade on the JSE, as
determined over the five trading days immediately preceding the date of
repurchase of the ordinary shares.
3.1 DETAILS OF THE REPURCHASE
3.1 Dates
The share repurchase was concluded on a day-to-day basis as market
conditions allowed between 26 September 2000 and 6 June 2001.
3.2 Price paid
Highest price paid for the shares 854 cents
Lowest price paid for the shares 653 cents
Average price paid per share (including costs) 815 cents
3.3 Number and monetary value
Total number of shares purchased
in terms of 323868 (0,3% of the 107 474 220
the first general authority ordinary share capital in
issue on 11 February 2000
Total number of shares purchased in
terms of the second general authority 8 206 584 (6,8% of the 121 012 784
ordinary share capital in
issue on 16 February 2001
Total number of shares repurchased 8 530 452
Total value of shares repurchased
(Rands) 69 530 617
Number of shares which may still
be repurchased by the Company 15 672 105 12,9% of the 121 012 784
ordinary share capital in
issue on 16 February 2001
3.4 Source of funds
The funds utilised to give effect to the share repurchase were sourced from
funds generated by the business and, 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 and its subsidiaries 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 and its subsidiaries 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 its subsidiaries will be adequate
for a period of 12 months from the date of this announcement; and
- the share capital and reserves of the Company and its subsidiaries 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"), fully diluted headline earnings per share ("FDEPS") and
net asset value per share ("NAV") of the Company based on the interim
financial results for the six months ended 31 March 2001, being the most
recent reported results. The EPS, FDEPS and NAV have been calculated by
assuming:
- that the share repurchase was concluded on 1 October 2000;
- that the funds utilised to repurchase the shares were sourced from cash
resources on which interest at an after tax rate of 7,25% per annum would
have been received;
- a company tax rate of 30%; and
- by applying the same accounting policies used in the Company's latest
audited annual financial statements.
Before (cents)(1) After (cents) Percentage
Increase/
(Decrease)
%
EPS 925 970 4,9
FDEPS 915 959 4,8
NAV 1 040 1 113 7,1
1. The before column reflects the EPS, FDEPS and NAV for the six months
ended 31 March 2001 excluding the effects of the share repurchase.
6. STOCK EXCHANGE LISTING
As all of the shares have been purchased by a subsidiary of AMB, and not by
AMB itself, no application will be made for termination of the listing of
the shares repurchased in terms of the share repurchase.
7 June 2001
Merchant bank and sponsor
AFRICAN MERCHANT BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1996/015470/06)
