| Wed 19 Oct 2005, 14:54 | | ERP.com - General repurchase of shares in Erp.com |
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ERP.com - General repurchase of shares in Erp.com
ERP.com Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/010017/06)
Share Code: ERP & ISIN: ZAE000043493
("ERP.com" or "the company")
GENERAL REPURCHASE OF SHARES IN ERP.COM
Introduction
Shareholders are advised that ERP.com has acquired 10 648 605 shares in the
issued share capital of the company on the open market for a purchase
consideration of R16 502 928 ("the general repurchase"), comprising
approximately 6,1% of ERP.com"s total current issued share capital. The highest
price paid was R1,55 while the lowest price paid was R1,50.
The general repurchase was effected in accordance with the JSE Limited ("JSE")
Listings Requirements under the general authority granted at ERP.com"s Annual
General Meeting held on Wednesday, 20 April 2005.
Implementation
The general repurchase was effected on the open market on 19 October 2005.
Extent of outstanding authority
The shares repurchased will be held as treasury shares. The extent of the
general authority outstanding for the current financial year is approximately 23
798 674 shares, representing approximately 13,5% of the total issued share
capital.
Sources of funds
The general repurchase was funded from available cash resources.
Opinion of directors
The directors of ERP.com have considered the effect of the general repurchase
and are satisfied that, for a period of 12 months from the date of the
commencement of repurchase being 19 October 2005:
- the company and the group would be able, in the ordinary course of
business, to pay its debts;
- the assets of the company and the group would be in excess of the
liabilities, having been recognised and measured in accordance with the
accounting policies used in the audited financial statements for the year
ended 31 July 2004;
- the share capital and reserves of the company and the group would be
adequate; and
- the working capital and working capital resources of the company and the
group would be adequate for 12 months from 19 October 2005, being the
commencement date of the repurchase.
The requirements of paragraph 5.72 (a) of the JSE Listings Requirements have
been complied with.
Financial effects
The pro forma financial effects of the general repurchase on earnings ("EPS"),
headline earnings ("HEPS"), net asset value ("NAV") and tangible net asset value
("NTAV") per share are set out below. This unaudited pro forma financial
information has been prepared for illustrative purposes only and because of its
nature may not give a fair reflection of ERP.com"s financial position and
results of operations, nor the effect and impact of the general repurchase going
forward and is the responsibility of ERP.com"s directors:
Per share Before(1) After (2) Change
(cents) (cents) (%)
EPS 15,5 16,1 3,90
HEPS 15,5 16,1 3,90
NAV 39,2 29,3 25,30
NTAV 37,5 27,6 26,40
Number of shares for EPS and HEPS 167 412 156 763
purposes (000)
Number of shares for NAV and NTAV 175 700 165 051
(000)
Notes:
Based on the reviewed financial results for the year ended 31 July 2005.
Based on the assumption that the general repurchase took place on 1 August 2004
for income statement purposes and 31 July 2005 for balance sheet purposes.
After taking into account the after tax interest forgone on the cash resources
available utilised to effect the general repurchase.
Johannesburg
19 October 2005
Sponsor
Nedbank Capital
Date: 19/10/2005 02:54:14 PM Produced by the JSE SENS Department
