| Fri 5 Sep 2003, 9:57 | | PURCHASE OF SAPPI SHARES BY A SAPPI SUBSIDIARY |
|
PURCHASE OF SAPPI SHARES BY A SAPPI SUBSIDIARY
SAPPI LIMITED
(Registration number 1936/008963/06)
(Incorporated in the Republic of South Africa)
Share Code : SAP ISIN : ZAE000006284
("Sappi")
PURCHASE OF SAPPI SHARES BY A SAPPI SUBSIDIARY
Further to an announcement made on 1 February 2001, shareholders are advised
that Sappi has purchased an additional 7,173,756 of its own shares representing
3% of Sappi"s ordinary share capital, at a cost of R693,141,797 (approximately
US$82.4m) ("the additional purchase"), on the open market through a wholly owned
subsidiary, acting in terms of the general authority granted by shareholders at
a general meeting held on 15 December 2000, and renewed at Annual General
Meetings of the company held on 1 March 2001, 25 February 2002 and 3 March 2003
("the general authority"). This has resulted in a cumulative purchase of
16,898,456 - 7.1% of Sappi"s ordinary share capital ("the general purchase").
In accordance with the Listings Requirements of the JSE Securities Exchange
South Africa, the following information about the additional purchase is
disclosed:
Total number of additional shares
purchased 7,173,756
% of Sappi ordinary share capital 3.0%
Total value of shares purchased (Rands) 693,141,797
Highest price paid (Rands) 150,00
Lowest price paid (Rands) 59,72
Period of purchases 2 February 2001 to
4 September 2003
Number of shares which may be purchased 20,058,000
by Sappi in terms of the general
authority to purchase 10% of Sappi"s
ordinary share capital, after deducting
purchases in the current financial
year.
% of Sappi ordinary share capital 8.4%
The general purchase was funded from available cash resources.
OPINION OF DIRECTORS
Having considered the impact of the general purchase, the directors of Sappi are
of the opinion that -
- Sappi and the group will be able to pay its debts in the ordinary course of
business;
- the assets of Sappi and the group will be in excess of its liabilities,
measured in accordance with the accounting policies used in Sappi"s consolidated
audited annual financial statements for the financial year ended 30 September
2002;
- the share capital and reserves of Sappi and the group will be adequate for
ordinary business purposes; and
- the working capital of Sappi and the group will be adequate for ordinary
business purposes
for a period of twelve months after the date of this announcement.
FINANCIAL EFFECTS
Based on Sappi"s results for the 9 month period ended 30 June 2003, and on the
assumption that the general purchase had been completed on 1 October 2002, the
financial effects of the general purchase on the earnings, headline earnings,
net asset value and net tangible asset value per Sappi share are as follows -
NOTES As After the
reported general
purchase
(US % change
(US cents)
cents)
Earnings 1 61 61 --
per share
Headline 1 60 60 --
earnings
per share
Net asset 2 1,059 1,058 -0,1%
value per
share (*)
Net 2 1,059 1,058 -0,1%
tangible
asset
value per
share (*)
(*) shareholder"s equity plus net deferred tax.
NOTES
The amounts in the "As reported" column represent the unaudited earnings and
headline earnings per share disclosed in the results for the nine months ended
30 June 2003. The amounts in the "After the general purchase" column represent
the earnings and headline earnings per share after the general purchase on the
following assumptions :
* the purchases since 1 October 2002 were effective on 1 October 2002
* an opportunity cost of 6% per annum was applied to such purchases
The amounts in the "As reported" column represent the unaudited net asset value
and net tangible asset value per share as disclosed in the financial results for
the nine months ended 30 June 2003. The amounts in the "After the general
purchase" column represent the unaudited net asset value and net tangible asset
value based on the financial results for the nine months ended 30 June 2003
adjusted on the assumption that purchases since 1 October 2002 were effective on
1 October 2002.
TREATMENT OF SAPPI SHARES ACQUIRED
The Sappi shares acquired in terms of the general purchase are treated as
treasury shares until they are sold. As treasury shares, they have no voting
rights and are disregarded in calculating earnings and net asset value per
share. It is Sappi"s current intention to continue to transfer, from time to
time, such of the Sappi shares acquired to participants of The Sappi Limited
Share Incentive Scheme as are required for the purpose of meeting obligations to
participants of the scheme. Once transferred to such participants or sold, the
relevant shares are released from treasury and are again taken into account in
calculating earnings and net asset value per share.
STOCK EXCHANGE LISTINGS
As the shares acquired in terms of the general purchase were acquired by a Sappi
subsidiary (and not by Sappi itself), application will not be made to any of the
stock exchanges on which Sappi shares are listed for the reduction in the number
of Sappi shares listed.
Johannesburg
5 September 2003
Attorneys Sponsor
Werksmans Inc. UBS Securities South Africa
(Registration No.1990/007215/21) (Proprietary) Limited
A subsidiary of UBS AG
(Registration No. 1996/011140/07)
Certain statements in this release that are neither reported financial results
nor other historical information, are forward-looking statements, including but
not limited to statements that are predictions of or indicate future earnings,
savings, synergies, events, trends, plans or objectives. Undue reliance should
not be placed on such statements because, by their nature, they are subject to
known and unknown risks and uncertainties and can be affected by other factors,
that could cause actual results and company plans and objectives to differ
materially from those expressed or implied in the forward-looking statements (or
from past results). Such risks, uncertainties and factors include, but are not
limited to the highly cyclical nature of the pulp and paper industry (and the
factors that contribute to such cyclicality, such as levels of demand,
production capacity, production and pricing), adverse changes in the markets for
the group"s products, consequences of substantial leverage, changing regulatory
requirements, unanticipated production disruptions, economic and political
conditions in international markets, the impact of investments, acquisitions and
dispositions (including related financing), any delays, unexpected costs or
other problems experienced with integrating acquisitions and achieving expected
savings and synergies and currency fluctuations. The company undertakes no
obligation to publicly update or revise any of these forward-looking statements,
whether to reflect new information or future events or circumstances or
otherwise.
Date: 05/09/2003 09:07:09 AM Produced by the JSE SENS Department
