Astral Foods Limited - Repurchase Of Astral Foods Ordinary Shares
Astral Foods Limited
(Incorporated in the Republic of South Africa)
(Reg. No. 1978/003194/06)
(ISIN: ZAE000029757
JSE Share code: ARL)
(`Astral Foods`)
REPURCHASE OF ASTRAL FOODS ORDINARY SHARES
1. INTRODUCTION
Astral Foods herewith announces the repurchase of 1 797 091 Astral Foods
ordinary shares (4% of the issued ordinary shares) on the open market of the JSE
Limited (`JSE`), in accordance with the general authority granted by Astral
Foods shareholders at the annual general meeting held on 16 February 2005 to
repurchase up to 10% (`the repurchase`). Together with previous repurchases,
shares cumulatively repurchased to date amount to 3 950 339 (being 9.1%) of the
issued ordinary shares.
2. IMPLEMENTATION
The repurchases of the 1 797 091 Astral Foods ordinary shares commenced on 2
June 2005 and continued on a day-to-day basis as market conditions allowed.
Details are as follows:-
Number of ordinary shares repurchased 1 797 091
Value of ordinary shares repurchased R123 294 750
Highest price paid per ordinary share R73.82
Lowest price paid per ordinary share R62.75
Average price paid per ordinary share R68.61
The number and percentage of ordinary shares
which may still be repurchased by the company
in terms of the general authority 399 539 (0.9%)
Ordinary shares in issue on 16 February 2005 43 498 780
Ordinary shares in issue on date of this
announcement 44 486 313
3. SOURCE OF FUNDS
Repurchases to date have been funded from available cash resources.
4. OPINION OF THE DIRECTORS
At the time of the granting of the general authority the directors of Astral
Foods considered the impact of the repurchases and were of the opinion that:-
4.1 Astral Foods and the Group will be able, in the ordinary course of
business, to pay its debts for a period of 12 months;
4.2 the consolidated assets of Astral Foods and the Group are in excess of the
consolidated liabilities, measured in accordance with the accounting policies
used in the audited annual financial statements for the year ended 30 September
2004;
4.3 the ordinary share capital and consolidated reserves of Astral Foods and
the Group will be adequate for a period of 12 months; and
4.4 the working capital of Astral Foods and the Group will be adequate for a
period of 12 months.
The directors further confirm that section 5.72(a) of the JSE Listing
Requirements has been complied with.
5. FINANCIAL EFFECTS
The effect of the repurchases on Astral Foods` earnings, headline earnings and
net asset value (NAV) per share is illustrated below. By its nature, this
illustration may not truly represent Astral Foods` financial position.
Measure (in cents per Before the After the Change
share) repurchase repurchase (%)
Basic earnings 392.2 398.3 +1.6%
Headline earnings 406.6 413.4 +1.7%
Diluted basic earnings 374.3 379.4 +1.4%
Headline earnings 388.1 393.8 +1.5%
Net asset value 2021 1802 -10.8%
Net tangible asset value 1745 1514 -13.2%
Notes
Based on results for the six months ended 31 March 2005 as if the shares were
bought back on 1 October 2004.
Earnings have been reduced with the after tax interest effect on the cash
outflow as a result of the shares repurchased.
The weighted average number of shares used in calculating the different earnings
per share figures, has been reduced with the number of shares repurchased.
6. JSE LISTING
These ordinary shares have been repurchased by a wholly-owned subsidiary of
Astral Foods, thus none of the ordinary shares will be cancelled nor will the
JSE listing in respect of those shares be terminated.
Pretoria
29 August 2005
Sponsor
J.P. Morgan Equities Limited
Date: 29/08/2005 04:00:10 PM
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