Appleton Limited
(the name of which it is proposed to change to IMR Investments Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1999/004031/06)
("Appleton" or "the company")
Appleton repurchase of ordinary shares
Details of the share repurchase
Appleton Corporate Finance is authorised to announce that the subsidiary of
Appleton repurchased 46 351 064 million ordinary shares, representing 4,0%
of the company's issued ordinary shares. These shares were repurchased by a
subsidiary of Appleton Limited in a period from 13 February 2001 to 18 June
2001 and continuing at prices ranging from 8 cents per share to 15 cents per
share. The shares were repurchased at a price not exceeding the requisite
limits for share repurchases as prescribed by the JSE Securities Exchange
South Africa ("the JSE").
Extent of the authority to repurchase shares
In terms of the general authority granted by Appleton shareholders,
cumulative repurchases may not exceed 20% of the company's issued share
capital in any one financial year, provided that repurchases by a subsidiary
may not, in the aggregate in any one financial year, exceed 10% of the
issued share capital of the company . Therefore the company may repurchase
182 449 000 or 16% of the shares in issue.
Source of funds
The share repurchases have been funded from available cash resources and the
intention is that future repurchases will all be funded from available cash.
Opinion
The directors of the company have considered the impact of the share
repurchases and are unanimously of the opinion that:
- the company and its subsidiaries 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
the statements of generally accepted accounting practice, will remain in
excess of the liabilities of the company for a period of 12 months from the
date of this announcement;
- the issued ordinary capital and the reserves of the company are adequate
for the purposes of the business for a period of 12 months from the date of
this announcement; and
- the working capital available is sufficient for the company and its
subsidiaries' requirements for a period of 12 months from the date of this
announcement.
Financial effects
Before the Pro forma Percentage
repurchases after the repurchases change
Earnings and fully diluted
earnings per share (5,06) (5,29) 4,5
Headline earnings per share 0,55 0,56 1,8
Net asset value per share 7,35 7,44 1,2
Weighted average number
of shares 1 144 000 1 097 649 (4,0)
JSE listing
Since all the shares have been purchased by a subsidiary of Appleton and not
by Appleton itself, no application will be made for termination of the
listing of the shares repurchased.
21 June 2001
Sponsor
Appleton Corporate Finance
Member of the JSE Securities Exchange South Africa
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