| Thu 3 Oct 2002, 9:46 | | Wesco - Financial Effects Update |
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Wesco - Financial Effects Update
Wesco Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1968/005871/06)
(Share code WES)
(ISIN Number ZAE000007928)
("Wesco" or "the Company")
FINANCIAL EFFECTS UPDATE AS A CONSEQUENCE OF SECONDARY TAX ON COMPANIES ("STC")
PAYABLE BY WESCO PURSUANT TO THE PROPOSED CASH PAYMENT TO SHAREHOLDERS OF R55
PER SHARE ("THE CASH PAYMENT")
Further to the announcement published by Wesco on 30 September 2002 inter alia
dealing with the cash payment, the revised unaudited pro forma financial effects
on Wesco of the cash payment and proposed sale by Wesco of a controlling
interest in Toyota South Africa (Proprietary) Limited to Toyota Motor
Corporation of Japan ("the Sale"), as adjusted to take into account the STC
which will become payable by the Company on implementation of the cash payment,
are are set out below. The financial effects are based on the published
unaudited consolidated interim financial results of Wesco for the 6 months ended
30 June 2002 and have been prepared solely for purposes of illustration.
Per Wesco share Before 1 Pro forma Percentage Pro forma Percentage
after change after change
Sale cash
payment5
(1 260,2) 1 836,82 N/A 1 198,1 (34,8)
Earnings/(Loss)
per share
(cents)
Headline (1 260,2) 102,82 N/A (535,9) N/A
earnings/(loss)
per share
(cents)
Net asset value 17 306,7 19 731,83 14,0 13 593,1 (31,1)
per share
(cents)
Net tangible 17 306,7 19 731,83 14,0 13 593,1 (31,1)
asset value per
share (cents)
Notes to the table:
1. Extracted from the published unaudited consolidated interim results of Wesco
for the 6 months ended 30 June 2002.
2. Adjusted to reflect the earnings and headline earnings per share that the
Company would have earned had the Sale been effected by the Company with effect
1 January 2002 and the proceeds arising from the Sale had been invested to earn
an after tax interest income of 8,5% for the 6 months ended 30 June 2002.
Headline earnings per share excludes the profit resulting from the Sale.
3. Adjusted to reflect the effect on net asset value had the Sale been effected
by the Company with effect from 30 June 2002.
4. Prior to the Sale, Wesco consolidated its shareholding in Toyota SA.
Subsequent to the Sale, Wesco`s shareholding in Toyota SA will be equity
accounted.
5. Adjusted to reflect the effect of the cash payment, as if the cash payment
had been effected at the end of the financial period. STC of R53,92 million
(638,7 cents per share) has been included.
6. No account has been made for any possible taxation on capital gain arising
from the Sale nor of any future rights offers which may be undertaken by Toyota
SA.
The calculation of earnings and net asset value per share is based on Wesco`s
issued share capital of 8 441 800 ordinary shares.
Sponsor
PriceWaterhouseCoopers Corporate Finance
Johannesburg
3 October 2002
Date: 03/10/2002 07:30:00 AM Produced by the JSE SENS Department
