| Thu 24 Mar 2005, 12:47 | | REPURCHASE OF ORDINARY SHARES IN MONEYWEB |
|
Moneyweb - Repurchase of ordinary shares in Moneyweb in terms of a general
authority
MONEYWEB HOLDINGS LIMITED
(Registration No:1998/025067/06)
Share code:MNY ISIN:ZAE000025409
(`Moneyweb` or `the Company`)
REPURCHASE OF ORDINARY SHARES IN MONEYWEB IN TERMS OF A GENERAL AUTHORITY
1. INTRODUCTION
Moneyweb has, in accordance with the general authority obtained at the general
meeting of shareholders held on 16 August 2004 (`the general meeting`),
cumulatively repurchased 11.05% of its issued ordinary share capital on the JSE
Securities Exchange South Africa (`the JSE`), which share capital excludes 6 020
076 ordinary shares held as treasury stock and 947 394 unallocated ordinary
shares held by a share incentive trust (`the repurchases`). In accordance with
paragraph 11.27 of the Listings Requirements of the JSE, the Company is
disclosing details of the repurchases as they exceed 3% of the ordinary shares
in issue at the time that the authority was obtained at the general meeting.
2. DETAILS OF THE REPURCHASES
The details of the repurchases which were effected 22 March and
23 March 2005 respectively are as follows:
Number of ordinary shares repurchased 8 626 300
Highest price paid per ordinary share purchased 34 cents
Lowest price paid per ordinary share purchased 34 cents
Total value of ordinary shares repurchased R2 932 942
Number of ordinary shares which may still be
repurchased by Moneyweb in terms of the
general authority 6 980 206
Percentage of ordinary shares which may still
be repurchased by the Company in terms of the
general authority 8.9%
3. NO PRIOR UNDERSTANDING OR ARRANGEMENT
The repurchases were effected through the order book operated by the JSE trading
system and done without any prior understanding or arrangement between the
Company and the respective counter parties.
4. RATIONALE
The repurchases were effected as part of the Company`s desire to create a block
of treasury shares which can be used to effect a Black Economic Empowerment
transaction, a matter which has been informally discussed at board level for
some months.
5. SOURCE OF FUNDS
The repurchase was implemented using existing cash resources of Moneyweb and the
value of the shares repurchased will be set off against share capital and share
premium respectively.
6. DIRECTORS` OPINION
The directors of Moneyweb have considered the impact of the repurchase and are
of the unanimous opinion that for a period of twelve months from the date of
this announcement:
* the Company and the group will be able, in the ordinary course of business, to
pay their debts as they become due;
* the assets of the Company and the group, fairly valued in accordance with
South African Statements of Generally Accepted Accounting Practice, will be in
excess of the liabilities of the Company and the group;
* the working capital resources of the Company and the group will be adequate
for its current and foreseeable future business requirements; and
* the issued share capital and/or reserves are adequate for the purposes of the
business of the Company and the group for the foreseeable future.
7. FINANCIAL EFFECTS OF THE REPURCHASES
The table below sets out, for illustrative purposes only, the pro forma
financial effects of the repurchase on Moneyweb`s net loss, headline earnings,
net asset value and net tangible asset value per share, based on the uaudited
results for the six month interim period ended 30 September 2004. Because of
their nature they may not give a true reflection of Moneyweb`s financial
position, changes in equity and results of operations and cash flows after the
repurchases.
Before(1) After(4) Change
Loss per share (2) (cents) -9,9 -11,2 -13.2%
Headline loss per share (2) (cents) -0,26 -0,37 -43.9%
Net asset value per share (3) (cents) 24,4 23,3 -4.9%
Net tangible asset value
per share (3) (cents) 15,1 12,7 -15,6%
Weighted and closing number
of shares in issue (`000) 78 032 69406(4) -11,1%
The pro forma financial effects have been calculated based on the following
assumptions:
(1)the information in the `Before` column was extracted from the unaudited
interim results announcement in respect of the six months ended 30 September
2004;
(2)the calculation of the pro forma loss per share and headline loss per share
in the `After` column, assumes that the repurchases were effected on 1 April
2004 and the interest foregone of R56 459 (after taxation),(calculated at an
after taxation rate of 3.8% (5.5% before taxation)), on the cash resources
utilised for the repurchases has been added to the pro forma loss and headline
loss per share;
(3)the effect on net asset value and net tangible asset value per share assumes
that the repurchases were implemented on 30 September 2004. The cash of R2 932
942 utilised to effect the repurchases has been excluded from the net asset and
net tangible asset value.
(4)The 8 626 300 shares repurchased are being held as treasury stock by a wholly
owned subsidiary of Moneyweb and are accordingly excluded from the `After`
calculation.
8. LISTING ON THE JSE
The shares that have been repurchased will accordingly not be cancelled and no
application will be made to the JSE for the termination of the listing thereof.
Rosebank
24 March 2005
Sponsor
Grant Thornton Corporate Finance (Proprietary) Limited
Date: 24/03/2005 12:39:05 PM
Produced by the JSE SENS Department
