| Tue 20 May 2003, 17:55 | | Connection Group Holdings Limited - Announcement |
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Connection Group Holdings Limited - Announcement
Release Date: 20/05/2003 17:45:01 Code(s): CCT
CONNECTION GROUP HOLDINGS LIMITED - ANNOUNCEMENT
CONNECTION GROUP HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1997/005390/06)
ISIN : ZAE000016630
Share code : CCT
("CONNECTION GROUP")
1. INTRODUCTION
Connection Group herewith announces the repurchase of 3 744 100
(approximately 7,99 % of the issued ordinary shares) Connection Group ordinary
shares on the open market on the JSE Securities Exchange South Africa ("JSE"),
since and in accordance with the general authority granted by Connection Group
shareholders at the annual general meeting held on 15 October 2002 ("the
repurchase").
2. AUTHORISED REPURCHASE LIMITS
In terms of the special resolution:
the general authority is limited to a maximum of 20% of Connection Group"s
issued share capital provided that the acquisition of shares as treasury stock
by a subsidiary of Connection Group may not exceed 10% of the number of issued
shares of the company; and
any repurchase may not be made at a price greater than 10% above the weighted
average of the market value of the ordinary shares for the five business days
immediately preceding the date of such repurchase.
A maximum of 9 374 955 ordinary shares could be repurchased in terms of the
general authority obtained from shareholders.
3. IMPLEMENTATION
The acquisition of shares took place on 15 May 2003 and 16 May 2003.
Details are as follows :
Total number of ordinary shares repurchased: 3 744 100
Total value of ordinary shares repurchased: R8 981 396
Highest price paid per ordinary share: R2,40
Lowest price paid per ordinary share: R2,37
Average price paid per ordinary share including costs: R2,42
The number of ordinary shares which may still be repurchased by
the company in terms of the general authority: 5 630 855 (12%)
Ordinary share capital in issue on 30 November 2002: 46 874 775
Ordinary share capital in issue on date of this announcement: 46 874 775
4. SOURCE OF FUNDS
Repurchases to date have been, and future repurchases will also be, funded
from available cash resources.
5. OPINION OF THE DIRECTORS
The directors of Connection Group have considered the impact of the
repurchases and are of the opinion that:-
5.1 Connection Group 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;
5.2 the consolidated assets of Connection Group and its subsidiaries are in
excess of the consolidated liabilities, measured in accordance with the
accounting policies used in the audited annual financial statements for the year
ended 31 May 2002;
5.3 the ordinary share capital and consolidated reserves of Connection Group
and its subsidiaries will be adequate for a period of 12 months from the date of
this announcement; and
5.4 the working capital of Connection Group and its subsidiaries will be
adequate for a period of 12 months from the date of this announcement.
6. FINANCIAL EFFECTS
The financial effects of the repurchases are as follows:
Before After (note %
(note ) ) Change
Earnings per share (cents) 16,91 17,58 3,96%
Headline earnings per share 16,91 17,58 3,96%
(cents)
Net asset value per share (cents) 119,02 107,73 (9,48%)
Tangible net asset value per 119,02 107,73 (9,48%)
share (cents)
Fully diluted earnings per share 15,76 16,28 3,30%
(cents)
Fully diluted headline earnings 15,76 16,28 3,30%
per share (cents)
Note 1: Based on Connection Group"s interim results for the six months ended
30 November 2002.
Note 2: The financial effects are calculated based on the assumption that the
repurchases had been carried out on 1 June 2002 and that the shares acquired
were included in treasury stock from that date.
7. JSE LISTING
As all the ordinary shares have been repurchased by a wholly-owned subsidiary of
Connection Group, none of the ordinary shares will be cancelled nor will the
JSE listing in respect of those shares be terminated.
Rivonia
20 May 2003
