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PCN
PCN
Paracon - Repurchase of Paracon Ordinary Shares on the open market
Paracon Holdings Limited
Incorporated in the Republic of South Africa
(Registration Number 1997/008181/06)
Share code: PCN & ISIN: ZAE000029674
("Paracon" or "the company")
REPURCHASE OF PARACON ORDINARY SHARES ON THE OPEN MARKET
1. Repurchase
The company has repurchased 12 716 933 (3%) of its ordinary
shares on the open market, acting on the general authority
granted to the directors by shareholders at the annual general
meeting on 21 February 2006 ("the general authority"). In
accordance with the Listings Requirements of JSE Limited
("JSE"), the company discloses the following information:
2. Details of share repurchases
The repurchases of the 12 716 933 ordinary shares commenced on
31 May 2006 and continued on a day-to-day basis as market
conditions allowed.
Details are as follows:
Number of ordinary shares repurchased 12 716 933
Value of ordinary shares repurchased R18 339 160
Highest price paid per ordinary share R1,50
Lowest price paid per ordinary share R1,39
Average price paid per ordinary shares R1,43
The number and percentage of ordinary shares which may still be
purchased by the company in terms of the general authority is 66
702 343 (17%).
3. Source of funds
Repurchases to date have been funded from available cash
resources.
4. Directors" statement
The directors have considered the effect of the repurchases and
are of the opinion that:
- the ability of the company and its subsidiaries to continue
to pay their debts in the ordinary course of business will
not be affected by the repurchases for the period of 12
months after the date of this announcement;
- the assets of the company and its subsidiaries exceed their
liabilities, measured in accordance with the accounting
policies used in the company"s financial statements for the
12 months from the date of this announcement;
- the ordinary capital and reserves of the company are adequate
for the company"s requirements for the period of 12 months
from the date of this announcement; and
- the working capital of the company is adequate for the period
of 12 months from the date of this announcement.
The directors confirm that the repurchase was effected through
the order book operated by the JSE trading system and without
any prior understanding or arrangement between the company and
the respective counterparties.
5. Financial effects
The financial information below is included for the purposes of
indicating the effect of the repurchases on Paracon"s earnings,
headline earnings, net asset value and net tangible asset value
per share. The directors of the company are responsible for the
financial information below. The information is for illustrative
purposes only and by its nature may not fairly represent the
company"s financial position, changes in equity, results of
operations or cash flows.
Before After the Percentag
Measure (in cents per share) the repurchas e change
repurchas e
e
Basic earnings 5,47 5,52 1,1
Headline earnings 5,47 5,52 1,1
Net asset value 50,35 47,13 (6,4)
Net tangible asset value 31,69 27,83 (12,2)
Notes:
1. The "Before the repurchase" numbers are based on the interim
results of the group as at 31 March 2006.
2. The "After the repurchase" earnings and headline earnings per
shares are based on the repurchase of 12 716 933 shares at the
beginning of the period. Earnings per share increases due to the
anti-dilutive effect of a lower weighted number of ordinary shares
in issue during the year, partly offset by a reduction in earnings
as a result of the interest effect (after tax) of reduced cash
resources applied to fund the repurchase. The interest effect
assumes an interest rate of 7,4% per annum before tax.
3. The "After the repurchase" net asset and net tangible asset
value per share assumes the repurchase of 12 716 933 ordinary
shares at 31 March 2006. Net asset value per share reduces due to
a decrease in share capital and premium, partly offset by a lesser
number of total ordinary shares in issue.
6. JSE listing
The total of 12 716 933 ordinary shares have been repurchased by
a wholly-owned subsidiary of Paracon and will be held as
treasury shares.
12 July 2006
Sponsor
Merchant Sponsors (Proprietary) Limited
Date: 12/07/2006 12:21:08 PM Produced by the JSE SENS Department
