ELB Group Limited
Special dividend announcement
(Registration number 1930/002553/06)
Ordinary shares : Share code: ELR ISIN: ZAE000035101
Preference shares : Share code : ELBP ISIN: ZAE000035333
("ELB" or "the company")
INTRODUCTION
The ELB Board has decided that the cash in the Group of approximately R320
million exceeds the needs of the existing businesses. There are also no
immediate plans or opportunities to reinvest all of the surplus cash.
As was indicated in the recent interim announcement, consideration was being
given to investing a portion of the surplus cash in listed equities. After
investigating the tax consequences of such a strategy, it has been decided
to distribute, by way of a special dividend, part of the surplus cash to
shareholders for them to invest as they deem appropriate.
A special dividend of 600 cents per ELB ordinary share has been declared,
payable out of ELB`s distributable reserves, which will result in a dividend
distribution of approximately R184 million. The payment of the dividend
will, after taking account of existing Secondary Tax on Companies ("STC")
credits, trigger STC of approximately R16 million. ELB will therefore
experience a total cash outflow of approximately R204 million.
Following the dividend distribution, ELB will retain cash of approximately
R120 million and have net operating assets of approximately R60 million.
The ELB Group will therefore have a total net asset value of approximately
R180 million or 585 cents per share.
ELB will continue to seek opportunities to acquire suitable operating
businesses as well as to grow and develop its existing businesses.
DIVIDEND PROSPECTS
The special dividend distribution will reduce the capital base of the ELB
Group and will result in a reduction in the ordinary dividends to be
distributed.
The final dividend for the year ending 30 June 2002 will only be considered
at the September board meeting.
SPECIAL DIVIDEND DECLARATION
Notice is hereby given that a special dividend of 600 cents per ordinary
share has been declared. The last day to trade "cum" the dividend will be
Friday, 7 June 2002. The ordinary shares of ELB will commence trading "ex"
the dividend from the commencement of business on Monday, 10 June 2002. The
record date will be Friday, 14 June 2002. Payment will be made on Tuesday,
18 June 2002.
Shareholders may not dematerialise or rematerialise their holdings of ELB
ordinary shares between Monday, 3 June 2002 and Friday, 14 June 2002, both
days inclusive.
By order of the board
HAC Poole Boksburg
Secretary 16 May 2002
Date: 16/05/2002 04:35:00 PM Produced by the SENS Department
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