| Fri 30 May 2003, 15:52 | | Connection Group Holdings Limited - Repurchase Ann |
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Connection Group Holdings Limited - Repurchase 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 4 396 125 Connection
Group ordinary shares (approximately 9,38 % of the issued share capital) on the
open market of 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 27 May 2003. Details are as
follows :
Total number of ordinary shares repurchased: 4 396 125
Total value of ordinary shares repurchased: R10 550 700
Price paid per ordinary share: R2,40
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: 1 234 730 (2,6%)
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 % Change
(note (note (2))
(1))
Earnings per share (cents) 16,91 17,71 4,73%
Headline earnings per share 16,91 17,71 4,73%
(cents)
Net asset value per share 119,02 105,54 (11,33%)
(cents)
Tangible net asset value per 119,02 105,54 (11,33%)
share (cents)
Fully diluted earnings per share 15,76 16,38 3,93%
(cents)
Fully diluted headline earnings 15,76 16,38 3,93%
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
All the shares have been repurchased by a wholly owned subsidiary of Connection
Group. The cumulative repurchases under the general authority which include the
share repurchases in the announcement published on 20 May 2003, amount to 8 140
225 ordinary shares or 17.37% of the shares in issue. As this exceeds the 10%
treasury stock threshold in terms of the general authority , 3 452 748 (7.37%)
ordinary shares will be cancelled and the JSE listing in respect of these shares
will be terminated.
Rivonia
30 May 2003
Sponsor
Rand Merchant Bank a division of FirstRand Bank Limited
Corporate Finance
