| Tue 23 Oct 2001, 0:00 | | New Africa Capital Limited - Repurchase Of Issued |
|
the open market
New Africa Capital Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2000/031756/06)
(Share code: NAC ISIN code: ZAE000033130)
("NAC" or "the Company")
Repurchase of issued ordinary shares in NAC on the open market
1. Repurchase
The directors of NAC are authorised to announce the purchase by its wholly-
owned subsidiary company, Metropolitan Life Limited ("Metropolitan"), of 11
385 300 of the Company's ordinary shares as Treasury Stock on the open
market. This represents 1,56% of the total issued ordinary share capital of
the Company, at the date of the listing of NAC, being the date on which the
general authority to repurchase shares ("the Authority Date") became
effective for the purposes of the Listing Requirements of the JSE Securities
Exchange South Africa ("JSE").
Prior to the restructure of the Metropolitan Group, Metropolitan acquired
shares in New Africa Investments Limited ("Nail") on behalf of its
policyholders; in terms of Section 32(2) of the Long-Term Insurance Act,
1998. This acquisition amounted to 4,44% of the total issued share capital
of NAC after Nail completed its unbundling. Metropolitan has, therefore,
cumulatively acquired 6,00% of the issued ordinary share capital of NAC at
16:00 on 22 October 2001.
2. Details of the cumulative share repurchases
The details of the cumulative share repurchases between 28 September 2001
and 22 October 2001 are set out below:
- Number of ordinary shares repurchased 11 385
300
- Percentage of the Company's issued ordinary 1,56%
shares at the Authority Date
- Total value of ordinary shares purchased R98 554
227
- Highest value paid per ordinary share purchased 885 cents
- Lowest value paid per ordinary share purchased 840 cents
- Number of ordinary shares which may still be 101 880
repurchased by the Company in terms of the general 269
authority
- Percentage of the Company's issued ordinary 14,00%
shares which may still be repurchased by the
Company in terms of the general authority
- Number of ordinary shares which may still be 29 102
repurchased by subsidiaries of NAC (on behalf of 221
both shareholders and policyholders)
- Percentage of the Company's issued ordinary 4,00%
shares which may still be repurchased by
subsidiaries (on behalf of both shareholders and
policyholders)
3. Source of funds
The share repurchases were implemented using funds generated in the ordinary
course of business.
4. Directors' opinion
The directors of NAC have considered the effects of the share repurchases
and are unanimously of the opinion that, for a period of 12 months after the
date of this announcement:
- the Company and its subsidiaries will be able to meet their debts in the
ordinary course of business;
- the assets of the Company and its subsidiaries, fairly valued in
accordance with Generally Accepted Accounting Practice, will remain in
excess of the liabilities of the Company and its subsidiaries;
- the issued capital and reserves of the Company and its subsidiaries are
adequate for the purposes of the business;
- the working capital available to the Company and its subsidiaries is
sufficient for the Company and its subsidiaries.
5. Financial effects of the repurchases
The table below sets out the financial effects of the repurchase of 1,56% of
NAC's issued ordinary share capital:
Before the After the Increase/
repurchases repurchases (Decrease)
(cents) (cents) %
Earnings per share 34,02 34,04 0,1
Headline earnings per share 36,78 36,84 0,2
Enterprise value per share 1 066 1 069 0,3
Adjusted asset value per 737 735 (0,3)
share
Notes:
The pro forma financial effects on the NAC group are calculated based on the
results for the six months ended 30 June 2001 assuming that the purchases to
date had been carried out on 1 January 2001. The accounting policies
employed by NAC for the six months ended 30 June 2001 have been applied in
making these calculations.
This assumes that the ordinary shares had been repurchased with the funds in
hand on which there would have been a loss of interest received, calculated
at an after-tax rate of 7,5% per annum.
The shares held on behalf of the policyholders are not eliminated on
consolidation, and thus have no effect on the group results.
6. JSE listing
The shares have been acquired by Metropolitan, a wholly-owned subsidiary of
NAC, to be held on behalf of shareholders as Treasury Stock. Accordingly,
the shares will continue to be listed on the JSE.
Bellville
23 October 2001
Sponsor to NAC
Deutsche Securities (SA) (Pty) Ltd
Sponsor to NAC in Namibia
Colin van Zyl / Hendrik Lombard
Trading as Lexus Securities (Pty) Ltd
Legal advisor
Deneys Reitz Attorneys
