| Mon 26 Nov 2001, 0:00 | | Ist Group Limited - Repurchase By Ist Of Its Own S |
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IST Group Limited
(Registration number 1998/011521/06)
(Incorporated in the Republic of South Africa)
Share Code: IST ISIN Code: ZAE000015798
("IST" or "the Company")
REPURCHASE BY IST OF ITS OWN SHARES
1. INTRODUCTION
BoE Merchant Bank, a division of BoE Bank Limited, is authorised to announce
that IST, pursuant to the general authority to repurchase shares ("the
authority") granted to it by shareholders in general meeting on Wednesday,
20 June 2001, has repurchased 11 000 000 of its own shares ("the share
repurchase") on the open market of the JSE Securities Exchange South Africa
("JSE"). This amounts to 8.23% of the issued ordinary shares of 133 648 757
at the time the authority was granted.
2. EXTENT OF THE AUTHORITY
In terms of the authority:
- repurchases may not exceed 20% of the Company's issued stated capital at
the date on which the 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. DETAILS OF THE REPURCHASE
3.1 Dates
The share repurchase was concluded on a day-to-day basis as market
conditions allowed on 22 November 2001, 23 November and 26 November 2001.
3.2 Price paid
The prices paid were as follows:
22 November 2001 : 834 900 shares at 75 cents each.
23 November 2001 : 5 000 at 79 cents each.
: 8 094 700 at 80 cents each, the threshold of 3%
was reached by this purchase.
26 November 2001 : 2 065 400 at 80 cents each.
3.3 Number and monetary value
11 000 000 shares were repurchased for a total consideration of R8 758
205,00.
3.4 Extent of authority outstanding
The extent of the authority outstanding after the shares repurchased in the
current financial year is 15 729 751 shares, equivalent to 7,7% of the total
stated capital on the date on which authority was granted.
3.5 Source of funds
The funds utilised to give effect to the repurchase were sourced from funds
generated by the business and existing cash resources available to the
group.
4. OPINION OF THE DIRECTORS
In terms of the JSE Listings Requirements, the directors of the Company are
of the opinion that, after considering the effect of the share repurchase:
the Company and its subsidiaries ("the Group") will be able, in the ordinary
course of business, to pay its debts for a period of 12 months after the
date of this announcement;
the assets of the Group will be in excess of the liabilities of the Group,
recognised and measured in accordance with the accounting policies used in
the latest annual financial statements, for the 12 months after this
announcement; and
the ordinary capital and reserves and working capital of the Group are
adequate for a period of 12 months after the date of this announcement.
5. FINANCIAL EFFECTS
The table below sets out the effects of the share repurchase on the headline
earnings per share ("EPS") and net tangible asset value per share ("NAV)" of
the Company based on the unaudited interim results for the 6 months ended 31
August 2001, being the most recent reporting period. The EPS and NAV have
been calculated by assuming:
- that the share repurchase was concluded on 1 March 2001;
- that the funds utilised to repurchase the shares were sourced from
investment on which interest of 10% was earned;
- a company tax rate of 30%; and
- by applying the same accounting policies used in the Company's latest
audited annual financial statements.
Before After Percentage
(cents) (cents) Increase/(Decrea
se)
%
EPS
-basic 7,18 7,33 2,1
-fully 6,29 6,13 0,7
diluted
HEPS
-basic 7,19 7,34 2,1
-fully 6,10 6,14 0,7
diluted
NAV 81,8 82,0 0,2
NTAV 80,0 80,0 -
Shares in 131 685 587 120 685 587
issue 1
Shares in 132 657 693 121 657 693
issue 2
1. Weighted average number of shares in issue in respect of the six months
ended 31 August 2001.
2. At 31 August 2001.
CANCELLATION OF SECURITIES
The repurchased shares will be cancelled as soon as is practicably possible.
Application will be made to the JSE for the termination of the listing of
such repurchased shares.
27 November 2001
SPONSOR
BoE Securities (Pty) Ltd
Member of the JSE Securities Exchange South Africa
Co. Reg. No. 1995/012240/07
