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PICK ` N PAY STORES LIMITED - REPURCHASE OF ORDINARY SHARES IN PICK `N PAY
PICK ` N PAY STORES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1968/008034/06
Share code: PIK ISIN: ZAE000005443
("Pick `n Pay")
Repurchase of ordinary shares in Pick `n Pay
Introduction
In terms of general authorities granted to Pick `n Pay to repurchase its
ordinary shares, the latest being a special resolution passed by Pick `n Pay
shareholders on 25 June 2002 ("the general authority"), a maximum of 99 428 847
ordinary shares (being 20% of the issued share capital) could be acquired.
2. Implementation
As at the close of business on 13 December 2002, Pick `n Pay has acquired, in
the open market, a total of 15 269 158 ordinary shares, equivalent to 3.07% of
the issued share capital at the time of the granting of the general authority,
for a total consideration of R176 219 072. The repurchases were carried out over
the period May 2001 to December 2002. The highest price paid was R13.90 per
share and the lowest price paid was R9.70 per share, an average price of R11.54.
The extent of the authority outstanding is 84 159 689 ordinary shares equivalent
to 16.93% of the total issued share capital.
Source of funds
Repurchases to date have been funded from available cash and it is intended that
all future purchases will also be funded from available cash.
Opinion of the directors
The directors of Pick `n Pay have considered the impact of the share repurchase
and are of the opinion that:
Pick `n Pay 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.
The consolidated assets of Pick `n Pay 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
August 2002.
The ordinary share capital and consolidated reserves of Pick `n Pay and its
subsidiaries will be adequate for a period of 12 months from the date of this
announcement.
The working capital of Pick `n Pay and its subsidiaries will be adequate for a
period of 12 months from the date of this announcement.
5. Effect on Earnings and Net Asset Value
Before After Change
(cents) (cents) %
Earnings per share 30.94 30.73 (0.68)
Headline earnings per share 37.76 37.63 (0.35)
Fully diluted earnings per share 29.77 29.56 (0.72)
Fully diluted headline earnings 36.33 36.19 (0.38)
per share
Net asset value 231.80 224.20 (3.28)
Net tangible asset value per 62.46 54.86 (12.16)
share
Assumptions
The pro forma financial effects ("after") are calculated on Pick `n Pay`s
unaudited results for the six months ended 31 August 2002, assuming:
The accounting policies employed by Pick `n Pay for the six months ended 31
August 2002 have been applied in making these calculations.
For the purposes of calculating the earnings and headline earnings related
figures, it was assumed that all the repurchases were carried out on or before 1
March 2002.
All the repurchases were financed by excess cash on hand on which interest was
received at an after tax rate of 7.9 % per annum.
All the calculations have been based on a weighted average number of shares in
issue of 487 093 372 and a fully diluted weighted average number of shares in
issue of 506 424 572.
For the purposes of calculating the net asset and net tangible asset value, it
was assumed that the repurchases were carried out on 31 August 2002, using the
number of shares in issue at that date of 483 443 882.
JSE Securities Exchange South Africa ("JSE") Listing
All the shares have been repurchased by subsidiaries of Pick `n Pay. 12 585 315
of the shares repurchased have been cancelled and the JSE listing in respect of
those shares has been be terminated. The remaining shares repurchased are being
held in a subsidiary company as treasury stock.
Cape Town
18 December 2002
Merchant Bank and Sponsor
Investec Bank Limited
Date: 18/12/2002 09:29:00 AM Produced by the JSE SENS Department
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