| Mon 17 Jul 2006, 11:15 | | Telkom - Repurchase announcement |
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TKG
TKG
Telkom - Repurchase announcement
Telkom SA Limited
(Registration Number 1991/005476/06)
ISIN ZAE000044897
JSE and NYSE Share Code TKG
("Telkom")
REPURCHASE ANNOUNCEMENT
1. INTRODUCTION
Further to the announcement dated 13 September 2004, Telkom announces that it
has repurchased a further 16,901,901 Telkom ordinary shares (3.03% of the issued
ordinary shares) on the JSE Limited ("JSE"), since and in accordance with the
general authority granted by Telkom shareholders at the annual general meeting
held on 27 January 2004 and renewed at annual general meetings held on 14
October 2004 and 21 October 2005 ("the repurchase"). The repurchases were
effected in accordance with 5.72 (a) of the JSE Listings Requirements.
2. AUTHORISED REPURCHASE LIMITS
In terms of the special resolution the general authority is limited to a maximum
of 20% of Telkom"s issued share capital. A maximum of 111,406,363 ordinary
shares could be repurchased in terms of the general authority obtained from
shareholders.
3. IMPLEMENTATION
The repurchase of 1,308,362 Telkom ordinary shares by Telkom subsidiaries was
executed between 15 September 2004 and 30 September 2004. The repurchase of
12,086,920 Telkom ordinary shares was executed between 29 June 2005 and 30
September 2005. The repurchase of 3,506,619 Telkom ordinary shares was executed
between 12 June 2006 and 13 July 2006. No shares were repurchased in closed
periods.
By Financial Financial
subsidiaries year ended year
in financial March 2006 ended
year March
ended March 2007
2005
Number of ordinary shares 1,308,362 12,086,920* 3,506,619
repurchased
Value of ordinary shares 96.86 1,502.53 446.23
repurchased (including
costs) (ZAR million)
Highest price paid per 74.98 129.39 132.93
ordinary share (ZAR)
Lowest price paid per 72.98 108.23 120.63
ordinary share (ZAR)
Average price paid per 73.77 123.87 126.79
ordinary share (excluding
costs) (ZAR)
Total
Total number of ordinary shares 39,159,787
repurchased to date by the company in
terms of the general authority
Ordinary shares in issue at 31 March 2005 557,031,819
Ordinary shares in issue at 31 March 2006 544,944,899*
Ordinary shares in issue on date of this 544,944,899*
announcement
Number of shares outstanding in terms of 72,246,576
authority
Percentage of shares outstanding in terms 12,97
of authority (%)
* 12,086,920 shares have already been cancelled from the issued share capital
and 3,506,619 shares are in the process of being cancelled and an application
will be made to the JSE for the delisting of these shares.
4. SOURCE OF FUNDS
Repurchases to date have been funded from available cash resources.
5. OPINION OF THE DIRECTORS
The directors of Telkom have considered the impact of the repurchases and are of
the opinion that:-
5.1 Telkom and the group will be able, in the ordinary course of business, to
pay their debts for a period of 12 months from the date of this announcement;
5.2 the assets of Telkom and the group will be in excess of the liabilities of
Telkom and the group for a period of 12 months from the date of this
announcement, measured in accordance with the accounting policies used in the
audited annual financial statements for the year ended 31 March 2006;
5.3 the ordinary share capital and consolidated reserves of Telkom and the group
will be adequate for a period of 12 months from the date of this announcement;
and
5.4 the working capital of Telkom and the group will be adequate for a period of
12 months from the date of this announcement.
6. FINANCIAL EFFECTS
As reported at Pro %
31 March forma(2,3) Change
2006(1)
Earnings per share (cents) 1,744.7 1,752.2 0.4
Headline earnings per share (cents) 1,740.5 1,748.0 0.4
Net asset value per share (cents) 5,593.5 5,545.2 (0.9)
Tangible net asset value per share (cents) 4,843.6 4,790.2 (1.1)
1. Reported results are based on the weighted average shares in issue
taking into account the 13,395,282 purchased prior to 31 March 2006.
2. Pro forma numbers presented are based on the assumption that the
3,506,619 ordinary shares purchased after 31 March 2006, were purchased on
1 April 2005.
3. For the purposes of calculating the earnings and headline earnings per
share, it is assumed that all repurchases were financed by excess cash on
hand on which interest was received at an after tax rate of 5% per annum.
Pretoria
17 July 2006
Sponsor: UBS
Date: 17/07/2006 11:15:10 AM Produced by the JSE SENS Department
