| Fri 6 Jul 2001, 0:00 | | Mettle - Proposed Specific Repurchase Of Shares |
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Mettle Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/010795/06)
(formerly Greenwich Group Limited)
("Mettle" or "the Company")
PROPOSED SPECIFIC REPURCHASE OF SHARES
1. INTRODUCTION
Shareholders are advised that Mettle proposes to repurchase 38 381 219
Mettle ordinary shares in terms of sections 85 and 89 of the Companies Act
(61 of 1973) as amended, and the listings requirements of the JSE Securities
Exchange South Africa ("JSE").
2. THE METTLE SPECIFIC REPURCHASE
2.1 Terms
Mettle proposes to acquire, in aggregate, 38 381 219 Mettle ordinary shares
from Armadillo Trust, Edge to Edge 149 (Pty) Limited, Richmond Three Trust
and IPM Trust ("the specific repurchase") at 55 cents per share. The
specific repurchase will be financed through Mettle's existing cash
resources.
2.2 Important dates
2001
General meeting of Mettle shareholders
to be held at 10:00 on Monday, 30 July
Shares repurchased on Friday, 3 August
Shares delisted and cancelled at
close of business on Friday, 3 August
2.3 Financial effects
The table below sets out the impact of the specific repurchase on the
consolidated audited financial results and the net asset position for the 12
months ended 31 March 2001, had the share repurchase and cancellation been
effected on 1 April 2000 and 31 March 2001, respectively.
Before After Change
(cents) (cents) %
Earnings per share 19,85 21,03 5,93
Headline earnings per share 13,10 13,72 4,75
Net asset value per share 46,79 45,95 (1,80)
Notes:
1. Since the year-end 31 March 2001, Mettle has cancelled 19 432 978 shares.
The amount consisted of 5 533 900 shares bought back in terms of a general
authority approved by the shareholders on 11 November 1999 and 8 November
2000, and 13 899 078 shares which were held as treasury shares as a result
of the merger between Greenwich Group Limited and Mettle Limited (now called
Mettle Operations Limited). The shares were delisted and cancelled on 15
June 2001.
There will not be any financial effects of the aforementioned share
cancellations on Mettle's financial statements for the year ended 31 March
2001, as the purchases took place during the financial year and the effects
have already been taken into account in the financial statements.
2. The interest effect of the cash resources utilised to finance the share
repurchase, was calculated using the average overnight call deposit rate for
the year ended 31 March 2001 of 9,9%.
3. 3.1 The Before earnings per share is calculated on the weighted average
number of shares as at 31 March 2001, namely 507 951 460.
3.2 The Before net asset value per share is calculated using 661 223 584
shares (734 074 362 minus 72 850 778 treasury shares).
4. There is no goodwill on the balance sheet, therefore the net tangible
asset value per share is equal to the net asset value per share.
3. CONDITIONS PRECEDENT TO THE METTLE SPECIFIC REPURCHASE
At the date of publishing this announcement, the following conditions
precedent remain outstanding:
- the passing of the requisite resolution approving the specific repurchase
at the general meeting to be held on Monday, 30 July 2001; and
- the registration of the special resolution passed at the general meeting
by the Registrar of Companies.
4. DOCUMENTATION
A circular containing full details of the specific repurchase and
incorporating a notice of a general meeting to be held, is to be posted to
Mettle shareholders today.
Illovo
6 July 2001
Corporate Adviser and Joint Sponsor
Mettle Limited Reg.No 1996/010795/06
Corporate Finance Division
Attorneys
Prinsloo, Tindle & Andropoulos Inc.
Attorneys
(Registration number 1998/021593/21)
Reporting Accountants
Pricewaterhouse Coopers
(Registration number 1998/012055/21)
Joint Sponsor
Pricewaterhouse Coopers
Corporate Finance (Pty) Ltd
(Registration number 1970/003711/07)
