THE HOUSE OF BUSBY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/009173/06
("Busby")
Repurchase of ordinary shares in Busby
1. Introduction
General authority for Busby to repurchase its ordinary shares was granted in
terms of a special resolution passed by Busby shareholders and registered by
the Registrar of Companies on 15 November 2001 ("the general authority"). A
maximum of 15 219 016 ordinary shares could be acquired in terms of the
general authority.
2. Implementation
As at the date of this announcement, Busby has acquired, in the open market,
a total of 6 624 023 ordinary shares, equivalent to 8.5% of the issued share
capital of Busby for a total consideration of R6 761 621. The highest price
paid for the ordinary shares acquired in terms of the general authority was
R1,30 per ordinary share and the lowest R0,90 per ordinary
share.
In terms of a general authority granted to Busby on 14 November 2000, 2 000
000 ordinary shares were purchased on 24 April 2001, these shares have
subsequently been cancelled.
In terms of the general authority granted on 15 November 20001, an
additional 4 624 023 ordinary shares were purchased. Accordingly, the extent
of the authority outstanding is 10 594 993 ordinary shares equivalent to 14%
of the total issued share capital.
3. Source of funds
Repurchases to date have been funded from available funding facilities.
4. Opinion of the directors
The directors of Busby have considered the impact of the share repurchase
and are of the opinion that:
Busby will be able, in the ordinary course of business, to pay its debts for
a period of 12 months from the date of this announcement.
The consolidated assets of Busby and its subsidiaries are in excess of the
consolidated liabilities, measured in accordance with the accounting
policies used in the unaudited interim financial statements for the six
months ended 31 December 2001.
The ordinary share capital and consolidated reserves of Busby and its
subsidiaries will be adequate for a period of 12 months from the date of
this announcement.
The working capital of Busby and its subsidiaries will be adequate for a
period of 12 months from the date of this announcement.
5. Effect on Headline Earnings and Net Asset Value
Before After %
(cents) (cents) Change
Earnings per share 19,9 21,0 5,5
Headline earnings per share 19,9 21,0 5,5
Net asset value 295.5 308.5 4.4
Net tangible asset value per 291,8 304,7 4,4
share
Assumptions
The pro forma financial effects are calculated on Busby's unaudited results
for the six months ended 31 December 2001 and assuming that the repurchase
was carried out on 30 June 2001 and was financed by excess cash on hand on
which interest was received at an after tax rate of 7,5 % per annum. The
accounting policies employed by Busby for the six months ended 31 December
2001 have been applied in making these calculations.
6. JSE listing
Application will be made for the termination of the listing of the relevant
shares in Busby on the JSE Securities Exchange South Africa.
Johannesburg
27 March 2002
Sponsor
Investec Securities
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