| Mon 18 Mar 2002, 0:00 | | Repurchase By Iliad Of Its Own Shares |
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Iliad Africa Limited
(Registration number 1997/011938/06)
(Incorporated in the Republic of South Africa)
("Iliad" or "the Company")
(Share code: ILA ISIN code: ZAE000015038)
REPURCHASE BY ILIAD OF ITS OWN SHARES
1. INTRODUCTION
BoE Merchant Bank, a division of BoE Bank Limited, is authorised to announce
that Iliad, pursuant to the general authority to repurchase shares ("the
authority") granted to it by shareholders in general meeting on 16 May 2001,
and further to the announcement dated 7 June 2001, has repurchased an
additional 6 580 261 of its own shares ("the share repurchase") through a
subsidiary, Iliad Africa Investments (Pty) Ltd, on the open market of the
JSE Securities Exchange South Africa ("JSE"). This amounts to 8,5% of the
issued ordinary shares of 77 239 582 at the time the authority was granted.
2. EXTENT OF THE AUTHORITY
In terms of the authority:
- repurchases in any one financial year may not exceed 20% of the Company's
issued ordinary share 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 Date
The share repurchase was concluded on 14 March 2002.
3.2 Price paid
3 000 shares were repurchased at 105 cents per share and 6 577 261 shares
were repurchased at 107 cents per share.
3.3 Number and monetary value
6 580 261 shares were repurchased for a total consideration of R7 040 819.
3.4 Extent of authority outstanding
The extent of the authority outstanding after the shares repurchased in the
current financial year is 8 867 655 shares, equivalent to 11,5% of the total
shares in issue 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, existing cash resources and credit facilities
available to the group.
4. OPINION OF THE DIRECTORS
The directors of the Company are of the opinion that after considering the
effect of the share repurchase:
- the Company will be able to settle liabilities that become due for payment
for a period of 12 months after the date of this announcement;
- the assets of the Company will exceed its liabilities, as measured in
accordance with the accounting polices used in the Company's latest audited
financial statements, for a period of 12 months from the date of this
announcement;
- the working capital of the Company and the group will be adequate for a
period of 12 months from the date of this announcement; and
- the stated capital and reserves of the Company and the group will be
adequate for a period of 12 months from the date of this announcement.
5. FINANCIAL EFFECTS
The table below sets out the effects of the share repurchase on the earnings
per share ("EPS"), headline earnings per share ("HEPS") and net tangible
asset value per share ("NTAV") of the Company based on the audited financial
results for the year ended 31 December 2001, being the most recent reporting
period. The EPS, HEPS and NTAV have been calculated by assuming:
- that the share repurchase was concluded on 01 January 2001;
- that the funds utilised to repurchase the shares were sourced from
borrowings on which interest of 13% is payable;
- a company tax rate of 30%; and
- by applying the same accounting policies used in the Company's latest
audited annual financial statements.
Percentage
Before (2) After Increase/
(cents) (cents) (Decrease)
EPS 34,4 36,8 7,0
HEPS 32,3 34,5 6,8
NTAV (1) 129,3 131,5 1,7
Number of
ordinary shares 74 658 982 68 078 721 (3) (8,8)
in issue
Weighted average
number of 74 582 728 68 002 467 (3) (8,8)
ordinary shares
in issue
1. The NTAV and net asset value per share figure reported for the year ended
31 December 2001 were the same.
2.Extracted from the audited financial results for the year ended 31
December 2001.
3. Excluding the 6 580 261 shares repurchased and held as treasury shares.
6. TREATMENT OF REPURCHASED SECURITIES
The 6 580 621 shares repurchased will be held in treasury by Iliad Africa
Investments (Pty) Ltd as a `war chest' to fund acquisitions and to serve as
share options to incentivise existing and incoming management.
18 March 2002
Merchant bank Sponsor
BoE Merchant Bank- BoE Securities (Pty) Ltd
A division of BoE Bank Member of the JSE Securities
Limited Exchange South Africa
Co. Reg. No. Co. Reg. No. 1995/012240/07
1951/000847/06
