| Mon 9 Dec 2002, 13:38 | | Repurchase of a further 4,3% of ordinary shares in |
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Repurchase of a further 4,3% of ordinary shares in Primeserv
PRIMESERV GROUP LIMITED
(Previously Privest Group Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1997/013448/06)
Share code: PMV ISIN: ZAE000039277
("Primeserv")
Repurchase of a further 4,3% of ordinary shares in Primeserv
Introduction
General authority for Primeserv to repurchase its ordinary shares was granted in
terms of a special resolution passed by Primeserv shareholders and registered by
the Registrar of Companies on 21 November 2001 ("general authority"). A maximum
of 31 246 592 ordinary shares could be acquired in terms of the general
authority. It was announced on 27 March 2002 that 24 170 216 ordinary shares,
equivalent to 15,5% of the total issued share capital of Primeserv had been
repurchased, all of which have now been cancelled.
Implementation
At the date of this announcement Primeserv has acquired, in the open market a
further 6 694 784 ordinary shares, equivalent to 4,3% of the issued share
capital of Primeserv at 21 November 2001, for a total consideration of R1 359
578. The highest price paid for the additional ordinary shares acquired in terms
of the general authority was R0,28 per ordinary share and the lowest R0,20 per
ordinary share. To date, Primeserv has acquired 30 865 000 ordinary shares, for
a total consideration of R8 073 748. The extent of the authority outstanding is
381 592 ordinary shares equivalent to 0,2% of the total issued share capital.
Source of funds
Repurchases to date have been funded by available cash. In accordance with the
approved plan, future repurchases will be funded from available cash.
Opinion of directors
Having considered the effect of the repurchase in terms of the general
authority, the directors of Primeserv remain of the opinion that, for a period
of 12 months from the date of this announcement:
- Primeserv and its subsidiaries will, in the ordinary course of business, be
able to pay their debts;
- the consolidated assets of Primeserv and its subsidiaries will be in excess
of their consolidated liabilities, measured in accordance with the accounting
policies used for the 12 months ended 30 June 2002;
- the ordinary share capital and consolidated reserves of Primeserv and its
subsidiaries will be adequate; and
- the working capital of Primeserv and its subsidiaries will be adequate.
Effect on headline earnings and net asset value
Before repurchase After repurchase Change
(cents) (cents) %
Attributable earnings per share 4,13 4,26 3,2
Headline earnings per share 4,72 4,88 3,4
Net asset value per share 61 62 1,6
The pro forma financial effects are calculated based on the results for the 12
months ended 30 June 2002 assuming that the purchases to date had been carried
out on 1 July 2001. The accounting policies employed by Primeserv for the 12
months ended 30 June 2002 have been applied in making these calculations.
Securities exchange listing
Application will be made for the termination of the listing of the relevant
ordinary shares repurchased by Primeserv on the JSE Security Exchange South
Africa.
Johannesburg
6 December 2002
Sponsor and merchant bank
Investec Bank Limited
(Registration number 1969/004763/06)
Date: 09/12/2002 09:02:07 AM Produced by the JSE SENS Department
