Imperial - Results Of Repurchase Of Ordinary Share
Authority
Imperial Holdings Limited
Registration number: 1946/021048/06
ISIN Code: ZAE 000003620
JSE Code: IPL
("Imperial" or "the Company")
Results of repurchase of ordinary shares in terms of a general authority
Introduction
A general authority to Imperial's directors approving the acquisition by
Imperial of its ordinary shares was granted in terms of a special resolution
passed by members of the Company at Imperial's annual general meeting held
on 1 November 2001.
Details of share repurchase
An amount of 7,322,862 ordinary shares, representing approximately 3.4% of
Imperial's issued ordinary shares, were repurchased by a subsidiary of
Imperial during the period available to repurchase Imperial's shares,
commencing from 7 December 2001 to 5 March 2002 at prices ranging from
R47.50 to R55.50 per share for a total consideration (excluding dealing and
other associated costs) of R370,739,267. The shares were repurchased in the
open market at a price not exceeding the limits as prescribed by the JSE
Securities Exchange South Africa ("the JSE").
Source of funds
The share repurchase has been funded from available cash resources.
Opinions
The Directors of the Imperial have considered the impact of the share
repurchase and are unanimously of the opinion that:
* the Company, and the Company and its subsidiaries ("the Group"), 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
statements of generally accepted accounting practice, will remain in excess
of the liabilities of the Company and the Group;
* the issued ordinary share capital and reserves of the Company and the
Group 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 to the Company and the Group is sufficient
for the Company's and the Group's requirements for a period of 12 months
from the date of this announcement.
Financial effects
The table below sets out the financial effects of the share repurchase on
the earnings per share, net asset value and net tangible asset value per
share of the Company based on the interim results for the six months ended
25 December 2001. The figures have been calculated by assuming that:
* the share repurchase was concluded on 26 June 2001;
* that the funds utilised to repurchase the shares were sourced from cash
resources on which interest at an after tax rate of 7.35% per annum would
have been received;
* 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 (cents) Percentage
(cents) Increase/(Dec
rease)
Headline 272.6 275.6 1%
earnings per
share
Nat asset 3,597.5 3,545.9 (1.5%)
value per
share
Net tangible 3,304.0 3,242.1 (1.8%)
asset value
per share
JSE Listing
The shares repurchased by the subsidiary will continue to be listed on the
JSE.
Edenvale
7 March 2002
Sponsor: Merrill Lynch South Africa (Pty) Ltd
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