Tourism Investment Corporation - Repurchase Of Ord
Tourism Investment Corporation
(Incorporated in the Republic of South Africa)
(Registration number 1996/008144/06
Share code: TRT ISIN:ZAE000012472
("Tourvest")
Repurchase of ordinary shares in Tourvest
1. Introduction
General authority for Tourvest to repurchase its ordinary shares was granted
in terms of a special resolution passed by Tourvest shareholders and
registered by the Registrar of Companies on 16 November 2001 ("the general
authority"). A maximum of 166 070 061 ordinary shares could be acquired in
terms of the general authority.
2. Implementation
As at the date of this announcement, Tourvest has acquired, in the open
market, a total of 26 450 193 ordinary shares, equivalent to 3.2% of the
issued share capital of Tourvest for a total consideration of R21019 634.
The highest price paid for the ordinary shares acquired in terms of the
general authority was 105 cents per ordinary share and the lowest 51 cents
per ordinary share.
The extent of the authority outstanding is 139 619 868 ordinary shares
equivalent to 16.8% of the total issued share capital.
3. Source of funds
Repurchases to date have been funded from available cash. In accordance with
the approved plan, future purchases will be funded from available cash.
4. Opinion of the directors
The directors of Tourvest have considered the impact of the share repurchase
and are of the opinion that:
4.1 Tourvest 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.
4.2 The consolidated assets of Tourvest 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.
4.3 The ordinary share capital and consolidated reserves of Tourvest
and its subsidiaries will be adequate for a period of 12 months from the
date of this announcement.
4.4 The working capital of Tourvest 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 5.7 5.8 1.8
Headline earnings per share 5.8 5.9 1.7
Net asset value 48.5 46.8 (3.5)
Net tangible asset value per share 44.9 43.2 (3.8)
Assumptions
The pro forma financial effects are calculated on Tourvest'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 7,2 % per
annum. The accounting policies employed by Tourvest for the six months ended
31 December 2001 have been applied in making these calculations. The
calculations have been based on a weighted average number of shares in issue
of 752 896 000.
6. Listing
As all the shares repurchased have been repurchased by a subsidiary of
Tourvest, none of the shares will be cancelled nor will the JSE listing In
respect of those shares be terminated.
Johannesburg
19 April 2002
Sponsor
Investec Securities
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