| Thu 21 Apr 2005, 16:03 | | GENERAL REPURCHASE ANNOUNCEMENT |
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Connection Group Holdings Limited - General Repurchase Announcement
Connection Group Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1997/005390/06)
ISIN: ZAE000042529
SHARE CODE: CCT
(`Connection Group` or `the Company`)
GENERAL REPURCHASE ANNOUNCEMENT
1. INTRODUCTION
Connection Group herewith announces the cumulative general repurchase of 1 919
843 Connection Group ordinary shares (4,96% of the issued ordinary shares)
effected through the order book operated by the JSE Securities Exchange South
Africa (`JSE`) on 18 April 2005 and 20 April 2005 (`the repurchases`).
The repurchases were effected in accordance with the general authority granted
by Connection Group shareholders at the annual general meeting held on 2
December 2004 (`the authority`).
2. AUTHORISED REPURCHASE LIMITS
In terms of the authority:
(a) repurchases are limited to a maximum of 20% of the issued
ordinary share capital; and
(b) repurchases 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.
In terms of the authority a maximum of 7 739 470 ordinary shares were authorised
to be repurchased.
3. IMPLEMENTATION
Details of the repurchases are as follows:-
18 April 2005 20 April 2005
Total number of ordinary shares
repurchased: 952 600 967 243
Total value of ordinary shares
repurchased: R8 752 020 R9 248 579
Highest price paid per ordinary
share: 920 950
Lowest price paid per ordinary
share: 900 950
Average price paid per ordinary
share including costs: 919 956
Number of ordinary shares which
may still be repurchased in terms
of the general authority: 6 786 870 5 819 627
Ordinary shares in issue at 31 38 697 350 38 697 350
August 2004:
Ordinary shares in issue at the 38 697 350 38 697 350
date of this announcement:
4. SOURCE OF FUNDS
Repurchases to date have been, and future repurchases will 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 and the 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 assets of Connection Group and the Group will be in excess of the
liabilities of Connection Group and the group, measured in accordance
with the accounting policies used in the audited annual financial
statements for the year ended 31 August 2004;
5.3 the ordinary share capital and reserves of Connection Group and the
Group will be adequate for ordinary business purposes for a period of
12 months from the date of this announcement; and
5.4 the working capital of Connection Group and the Group will be adequate
for ordinary business purposes for a period of 12 months from the date
of this announcement.
6. FINANCIAL EFFECTS
The pro forma financial effects set out below are the responsibility of the
directors of Connection Group and are provided for illustrative purposes only.
Due to the nature of pro forma financial information, it may not fairly present
the Company`s financial position.
Pro forma After % change
figures as if repurchase in
repurchases April 2005
had not taken (note 2)
place
(note 1)
Earnings per share
(cents) 90,87 94,05 3,5
Headline earnings per
share (cents) 92,16 95,42 3,5
Net asset value per
share (cents) 151,29 99,51 (34,2)
Tangible net asset
value per share
(cents) 94,11 38,73 (58,8)
Fully diluted earnings
per share (cents) 86,21 88,95 3,2
Fully diluted headline
earnings per share
(cents) 87,44 90,24 3,2
Note 1: Based on Connection Group`s audited results for the year ended 31
August 2004.
Note 2: The financial effects are calculated based on the assumption that the
repurchases had been carried out on 1 September 2003 and that the
shares acquired were included as treasury stock from that date.
7. JSE LISTING
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 these shares be terminated.
Sandton
21 April 2005
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
CORPORATE FINANCE
Date: 21/04/2005 03:58:37 PM
Produced by the JSE SENS Department
