AUTHORITY
(Incorporated in the Republic of South Africa)
(Registration number 1913/001284/06)
("ImperiLog" or "the Company")
Repurchase of ordinary shares in terms of a general authority
1. Introduction
Authority for ImperiLog to repurchase its ordinary shares ("shares") was
renewed in terms of a special resolution passed by members and registered by
the Registrar of Companies on 30 November 2000. A maximum of 11 082 971
shares may be acquired in terms of this resolution.
2. Details of the share repurchases
Durity Omega (Proprietary) Limited, a wholly-owned subsidiary of the
Company, repurchased 3 308 585 shares during the period from 31 December
2000 to 11 July 2001 at prices ranging from 158 cents per share to 75 cents
per share for a total consideration (excluding dealing costs) of R3 615 973
("the share repurchases"). These shares will be retained as treasury stock.
The shares repurchased represent 3% of the issued shares of ImperiLog. The
shares were repurchased on the open market at prices not exceeding the
requisite limits for share repurchases as prescribed by the Listings
Requirements of the JSE Securities Exchange South Africa. The extent of the
authority outstanding is 379 286 shares, equivalent to 0,4% of the Company's
total issued ordinary share capital.
3. Source of funds
The share repurchases have been funded from available cash resources and the
intention is that future repurchases will also be funded from available
cash.
4. Opinions
The directors of ImperiLog have considered the impact of the share
repurchases and are unanimously of the opinion that, for a period of 12
months from the date of this announcement:
* the Company, and the Company and its subsidiaries ("the group"), will be
able in the ordinary course of business to pay their debts;
* the assets of the Company and the group, fairly valued in accordance with
Statements of Generally Accepted Accounting Practice, will remain in excess
of their liabilities;
* the issued ordinary capital and reserves of the Company and the group are
adequate for the purposes of the business; and
* the working capital available to the Company and the group is sufficient
for their requirements.
5. Financial effects
The table below sets out the pro forma financial effects of the share
repurchases, which have been calculated on the following basis:
- under the column headed "Before", the headline earnings per share for the
six months ended 31 December 2000 and the net asset value per share (which
equals tangible net asset value) as at 31 December 2000; and
- under the column headed "After", the pro forma headline earnings per share
for the six months ended 31 December 2000 and the net asset value per share
as at 31 December 2000 assuming the share repurchases had been effected on 1
July 2000 and the opportunity cost of the cash utilised in effecting the
share repurchases was 10% (before tax).
Before After Change
Headline earnings per share (cents) 16,2 16,5 1,9%
Net asset value per share (cents) 101 101 -
12 July 2001
Johannesburg
Investment bank and sponsor
Nedcor Investment Bank
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