Mettle Limited - General Repurchase Of Shares On T
METTLE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1996/010795/06)
("Mettle" or "the Company")
(Share Code MEL)
(ISIN Code:ZAE000028569)
GENERAL REPURCHASE OF SHARES ON THE OPEN MARKET
Mettle has repurchased 36 524 934 of its own shares, which constitutes 5,4%
of its issued share capital, on the open market. This is in terms of the
general authority granted by shareholders at the annual general meeting,
held on 28 August 2001 ("the general authority").
In accordance with the listings requirements of the Johannesburg Stock
Exchange, the company makes the following disclosures:
Total number of shares repurchased 36 524 934
representing 5,4% of the total value of
shares purchased in the company's share
capital R20 088 713.70
Period of Purchases 19 February 2002 - 6 March 2002
Lowest price paid (cents) 50
Highest price paid (cents) 60
Number of shares which may still be
repurchased by the company in terms of
the general authority representing 14,6%
of the company's share capital in issue
on the date before any repurchases were
affected 99 835 879
Funds generated in the ordinary course of business were used to fund the
share
repurchases.
Directors' Statement
The Directors have considered the effect of the repurchases and are of the
opinion that:
1. The ability of the company and its subsidiaries to continue to pay
their debt in the ordinary course of business will not be affected by the
repurchases for the period of 12 months after the date of this announcement;
2. The ordinary share capital and reserves of the company are adequate
for the company's requirements for the period of 12 months from the date of
this announcement;
3. The assets of the company and its subsidiaries exceed their
liabilities,
measured in accordance with the accounting policies used in the company's
annual financial statements for the year ended 31 March 2001;
4. The working capital of the company is adequate for the company's
requirements for the period of 12 months from the date of this announcement.
Financial Effects of the Repurchase
Based on the company's interim results for the period ended 30 September
2001, and assuming that the shares had been repurchased on 1 April 2001, the
effect on the earnings, and net asset value per share would have been as
follows:
Before the After the %
repurchase repurchase
Net asset value per share (cents) 50.28 49.98 (0.59)
Earnings per share (cents) 6.07 6.34 4.37
Headline earnings per share (cents) 6.92 7.24 4.61
Assumptions
- The interest rate used to calculate the interest effect of the buyback was
the overnight SAFEX average for the period 1 April 2001 t0 30 September
2001.
- The taxation effect was calculated using the corporate tax rate of 30%.
- The earnings per share was calculated using a weighted number of shares of
616 125 782, excluding treasury shares.
- The NAV was calculated using a closing number of shares of 616 759 350,
excluding treasury shares.
- The tangible asset value was not disclosed as the value is the same as the
NAV.
The above repurchased shares will be de-listed and cancelled with effect
from the commencement of business on 13 March, 2002.
Illovo
8 March 2002
Corporate Adviser and Joint Sponsor
Mettle Limited
Corporate Finance Division
Joint Sponsor
PricewaterhouseCoopers
Corporate Finance (Pty) Ltd
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