Nedbank Group - Sale Of Shares In Net1 And Revised Forecast
Nedbank Group Limited
(formerly Nedcor Limited)
(Incorporated in the Republic of South Africa)
Registration number: 1966/010630/06
JSE share code: NED
ISIN: ZAE000004875
(`Nedbank Group` or `the group`)
SALE OF SHARES IN NET1 U.E.P.S. TECHNOLOGIES, INC. AND REVISED BASIC EPS
FORECAST
As part of Nedbank Group`s strategy of focusing on its core business of banking
and disposing of non-core assets, the group elected to sell 6 652 819 shares in
Net1 U.E.P.S. Technologies, Inc. (`Net1`) as part of that company`s public
offering and subsequent listing on NASDAQ.
Net1 confirmed on Wednesday, 3 August 2005 that it had priced the public
offering of 10 258 625 Net1 shares at $22,00 per share on 2 August 2005. The
offer closed on Monday, 8 August 2005.
Nedbank Group has received confirmation that, in terms of the public offering,
all the shares tendered have been sold. Nedbank Group has received approximately
$136,1 million in net proceeds from the offering (after deduction of costs).
This sale has resulted in a capital profit of approximately R793 million before
any tax. As the Net1 shares were accounted for as an `available for sale asset`
and valued at $16,40 per share at 30 June 2005, the net asset value of Nedbank
Group has increased by R177 million (before any tax) since the end of the half
year based on the net sale price achieved. Post the sale, Nedbank Group still
holds 1,5 million Net1 shares.
Following the confirmation of the sale of the Net1 shares, the group has revised
its forecast for basic earnings per share announced on Thursday, 4 August 2005.
The group now forecasts, assuming that exchange rates remain constant, that
basic earnings per share for the full year to December 2005 will be between 106%
and 126% higher than the International Financial Reporting Standards (`IFRS`)
restated 423 cents per share reported for December 2004. The profit from the
sale of these Net1 shares does not have an effect on headline earnings as it is
treated as a capital profit and accordingly the group forecast for headline
earnings remains unchanged, with headline earnings expected to be between 58%
and 78% higher than the R1 742 million restated results under IFRS for 2004.
Headline earnings per share are still estimated to be between 44% and 62%
greater than the IFRS restated 483 cents per share reported for December 2004.
These forecasts have not been audited or reviewed by the group`s auditors.
Sandton
11 August 2005
For further information kindly contact
Tier 1 Investor Relations
Tel: +27 (0)21 702 3102
Financial advisor
Merrill Lynch South Africa (Pty) Limited
Sponsors
Merrill Lynch South Africa (Pty) Limited
Nedbank Capital
Date: 11/08/2005 03:29:17 PM
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