| Wed 29 Jun 2005, 15:51 | | Iliad Africa Limited - Repurchase Of Ordinary Shar |
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Iliad Africa Limited - Repurchase Of Ordinary Shares
ILIAD AFRICA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/011938/06)
Share code: ILA ISIN: ZAE000015038
(`Iliad` or `the company`)
REPURCHASE OF ORDINARY SHARES
1. INTRODUCTION
In terms of a special resolution passed by Iliad shareholders on 11 May 2004, a
general authority was granted to Iliad to repurchase its ordinary shares (`the
general authority`). In terms of the general authority Iliad could repurchase a
maximum of 15 081 300 ordinary shares (being 10% of the company`s issued share
capital at the date the general authority was granted).
2. IMPLEMENTATION
As at the close of business on 28 June 2005, Iliad has acquired, in the open
market, a total of 4 573 500 ordinary shares, equivalent to 3,03% of the issued
share capital at the time of the granting of the general authority, for a total
consideration of R44 537 407 (`the repurchases`). The repurchases were carried
out over the period 4 April 2005 to 6 May 2005. The highest price paid was
R10,10 per share and the lowest price paid was R9,64 per share. The repurchases
were funded from the company`s available cash resources. All the ordinary shares
have been repurchased by a subsidiary of Iliad. These ordinary shares will be
held in the subsidiary company as treasury stock.
At the company`s annual general meeting held on 10 May 2005, the shareholders
renewed the general authority and as a result thereof, the extent of the
authority now available is in respect of 15 262 152 ordinary shares, equivalent
to 10% of the company`s issued share capital at the date the renewed authority
was granted.
3. OPINION OF THE DIRECTORS
The directors of Iliad have considered the impact of the repurchases and are of
the opinion that:
3.1 Iliad and the group will be able, in the ordinary course of business, to pay
its debts for a period of 12 months after the date of this announcement;
3.2 the assets of Iliad and the group will be in excess of the liabilities of
Iliad and the group for a period of 12 months after the date of this
announcement. For this purpose, the assets and liabilities have been recognised
and measured in accordance with the accounting policies used in the latest
audited group annual financial statements;
3.3 the share capital and reserves of Iliad and the group will be adequate
forordinary business purposes for a period of 12 months after the date of this
announcement; and
3.4 the working capital of Iliad and the group will be adequate for ordinary
business purposes for a period of 12 months after the date of this announcement.
4. FINANCIAL EFFECTS
Set out in the table below are the pro forma financial effects of the
repurchases based on Iliad`s published audited results for the year ended 31
December 2004. The pro forma financial effects have been prepared for
illustrative purposes only to provide information of how the repurchases may
have impacted on the results and financial position of Iliad. Because of their
nature, the pro forma financial effects may not give a fair reflection of
Iliad`s financial position after the repurchases or the effect on future
earnings.
Before the After the Percentage
Note repurchases repurchases change
(cents)1 (cents) (%)
Earnings per share (cents) 2 95,4 97,04 1,72
Headline earnings per share
(cents) 2 97,4 99,07 1,71
Weighted average number of shares
in issue (net of treasury shares) 141 995 454 137 421 954
Net asset value per share (cents) 3 346,42 325,75 (5,97)
Net tangible asset value per
share
(cents) 3 298,1 275,80 (7,48)
Shares in issue (net of treasury
shares) 143 378 640 138 805 140
Notes:
1. Extracted from the published audited results of Iliad for the year ended 31
December 2004.
2. Earnings and headline earnings per share are based on the following
assumptions:
* the repurchases were effected on 1 January 2004;
* the repurchases were financed through available cash resources on which
interest accrued at an after tax rate of 4,9% per annum.
3. Net asset value and net tangible asset value per share are based on the
assumption that the repurchases were carried out on 31 December 2004.
Johannesburg
29 June 2005
SPONSOR
Bridge Capital
REPORTING ACCOUNTANTS AND AUDITORS
Grant Thornton
Chartered Accountants (SA)
Accountants, Auditors & Business Advisers
Date: 29/06/2005 03:48:38 PM
Produced by the JSE SENS Department
