| Mon 2 Jun 2003, 16:00 | | Repurchase of shares in ABIL on the open market |
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AFRICAN BANK INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank controlling company)
(Registration number 1946/021193/06)
(Share code: ABL)(ISIN code: ZAE000030060)
("ABIL" or "the company")
Repurchase of shares in ABIL on the open market
1. Repurchase
The directors of ABIL are authorised to announce the repurchase of
20 000 000 (4,0% of the issued ordinary shares) of the company"s own shares on
the open market, acting on the general authority granted to the directors by
ABIL shareholders at the annual general meeting held on Friday 28 February 2003
("the general authority"). This purchase was conducted on 30 May 2003.
2. Details of the share repurchase on 30 May 2003
The details of the share repurchase on 30 May 2003 is set out below:
* Number of ordinary shares repurchased 20 000 000
* Percentage of the company"s issued ordinary shares 4,0%
* Total value of ordinary shares purchased R124 000 000
* Highest value paid per ordinary share purchased 620 cents
* Lowest value paid per ordinary share purchased 620 cents
* Number of ordinary shares which may still be repurchased
by the company in terms of the general authority 79 431 112
* Percentage of the company"s issued ordinary shares which
may still be repurchased by the company in terms of the
general authority 16,0%
3. Source of funds
The share repurchase was implemented using existing cash resources.
4. Directors" opinion
The directors of ABIL have considered the effects of the share repurchase and
are unanimously of the opinion that:
* the company and the group will be able to meet their debt obligations in the
ordinary course of business for a period of 12 months after the date of this
announcement;
* the assets of the company and the group, fairly valued in accordance with
Generally Accepted Accounting Practice (GAAP), will remain in excess of the
liabilities of the company and the group;
5. Financial effects of the repurchase
The table below sets out the financial effects of the repurchase of 4,0% of
ABIL"s issued ordinary share capital on its earnings per share, headline
earnings per share, net tangible asset value per share and net asset value per
share:
Before the After the Increase
repurchase repurchase Decrease)
Earnings per share (cents)2 66,3 68,1 2,7%
Headline earnings
per share (cents)2 67,6 69,4 2,6%
Net tangible asset value
per share (cents) 543,8 539,5 (0,8%)
Net asset value
per share (cents) 545,6 541,3 (0,8%)
Notes:
1. The financial effects are based on the ABIL unaudited results for the six
months ended 31 March 2003 which were published in the press on 19 May 2003.
2. This assumes that the ordinary shares repurchased had been repurchased on 1
October 2002 with the funds in hand on which there would have been a loss of
interest received, calculated at an after-tax rate of 8,4% per annum.
6. Stock Exchange listing
The shares repurchased will be retained by a wholly-owned subsidiary of ABIL and
will be cancelled by the next annual general meeting unless otherwise decided by
the ABIL board. Accordingly, the shares will continue to be listed on the JSE
Securities Exchange South Africa for the moment.
Sandton
2 June 2003
Sponsor
Deutsche Securities
Member of the Deutsche Bank Group
Deutsche Securities (SA) (Proprietary) Limited
(Registration number 1995/011798/07)
