MUSTEK LIMITED
Incorporated in the Republic of South Africa
(Registration number 1987/070161/06)
Share Code: MST ISIN: ZAE000012373
("Mustek")
BUY-BACK OF SHARES
1. Introduction
Exchange Sponsors is authorised to announce that Mustek has cumulatively
repurchased 7,32% of its issued shares ("the buy-back") on the open market
of the JSE Securities Exchange South Africa ("JSE"), in terms of the general
authority granted at the annual general meeting of Mustek shareholders held
on 29 November 2001.
2. Details of the buy-back
Period of the buy-back : 26 March 2002 to 7 May 2002
Highest price paid for shares: 351 cents
Lowest price paid for shares : 224 cents
Average price paid for shares 339,8 cents
Number of shares repurchased : 7 332 617
Value of shares repurchased : R24 918 960
Extent of general authority
Outstanding : 12,68%
3. Source of funds
Mustek has funded the buy-back from available cash resources.
4. Directors' confirmation
The directors of Mustek have considered the effect of the buy-back and
confirm that, for a period of 12 months after the date of this announcement:
4.1 Mustek and its subsidiaries ("the group") will be able to pay their
debts in the ordinary course of business;
4.2 the assets of Mustek and the group will continue to be in excess of
their liabilities;
4.3 the ordinary share capital and reserves of Mustek and the group will be
adequate; and
4.4 the working capital available to Mustek and the group will be adequate.
5. Financial effects of the buy-back
The table below sets out the financial effects of the buy-back on
Mustek's headline earnings, earnings and net asset value per share:
Historical Pro forma Change
before the after the (%)
buy-back buy-back
(cents) (cents)
Headline earnings
per share 38,00 40,06 5,42%
Earnings per share 31,52 33,07 4,93%
Net asset value
per share 358,20 359,65 0,41%
Number of shares
in issue 100 114 533 92 781 916 7,32%
Note: The pro forma financial effects are calculated on the basis of
Mustek's unaudited consolidated financial statements for the six month
period ended 31 December 2001, being the most recent reporting period. The
calculations assume that the buy-back had been made on 1 July 2001 for
earnings and headline earnings per share and on 31 December 2001 for net
asset value per share and a tax rate of 30%. All appropriate interest
adjustments to take account of interest income that would have been foregone
had cash resources been used for the buy-back have been reflected.
The shares repurchased in the buy-back will be cancelled by Mustek.
Midrand
8 May 2002
Joint Corporate Advisors Sponsor Legal Advisors to Mustek
Merchantec Exchange Sponsors Kramer and Viljoen
Corporate Solutions
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