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MET
MET
Metropolitan - Repurchase of ordinary shares in Metropolitan
METROPOLITAN HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2000/031756/06
ISIN: ZAE000050456
JSE Share Code: MET
NSX Share Code: MTD
("Metropolitan")
REPURCHASE OF ORDINARY SHARES IN METROPOLITAN
1. INTRODUCTION
Shareholders are advised that Metropolitan Life Limited ("the company"), a
wholly owned subsidiary of Metropolitan, has repurchased Metropolitan
ordinary shares in accordance with the general authority granted by
Metropolitan shareholders at the annual general meeting held on Tuesday, 30
May 2006.
2. IMPLEMENTATION
During the period 19 September 2006 to 16 November 2006, the company
acquired a total of 17 965 886 ordinary shares, equivalent to 3.01% of its
issued ordinary share capital as at 30 May 2006, at prices ranging from
1245 cents to 1416 cents per ordinary share, for a total consideration of
approximately R233 million (excluding dealing and other associated costs).
These shares were repurchased in the open market at prices not exceeding
the limits prescribed in the general authority and by the Listings
Requirements of the JSE Limited ("JSE"). These shares will not be
cancelled and will be held as treasury shares by the company.
The board and management of Metropolitan confirm that buying back ordinary
shares at prices up to embedded value, as part of an ongoing capital
management programme, is an effective and efficient way of adding value for
shareholders.
The extent of the outstanding repurchase authority is 100 million
Metropolitan ordinary shares.
3. SOURCE OF FUNDS
The share repurchase has been funded from available cash resources.
4. OPINIONS
The directors of Metropolitan have considered the impact of the share
repurchase and are unanimously of the opinion that:
- the company, and Metropolitan and its subsidiaries ("the group"),
will, in the ordinary course of business, be able to pay their debts
for a period of 12 months from the date of this announcement;
- the assets of the company and the group, fairly valued in accordance
with the accounting policies used in the latest audited annual group
financial statements, will remain in excess of the liabilities of the
company and the group;
- the issued ordinary share capital and reserves of the company and the
group are adequate for the purposes of the business for a period of 12
months from the date of this announcement;
- the available working capital of the company and the group is
sufficient for the requirements of the company and the group for a
period of 12 months from the date of this announcement; and
- subsequent to any repurchase, Metropolitan will comply with the JSE"s
spread requirements.
5. FINANCIAL EFFECTS
The financial effects have been prepared using accounting policies that
comply with International Financial Reporting Standards and have been
prepared for illustrative purposes only in order to assist shareholders to
assess the impact of the share repurchase on the diluted EPS, diluted HEPS,
NAV and embedded value per share. The presentation of the financial
effects is the responsibility of the directors and due to its nature may
not fairly reflect the financial position of the group after the share
repurchase.
As reported After all % change
at repurchases
30 June 2006
Diluted earnings per share 88.42 90.56 2.4
Diluted headline earnings 88.95 91.10 2.4
per share
Net asset value per share 792 779 (1.6)
Embedded value per share 1 479 1 483 0.3
Assumptions: The shares were acquired out of cash resources that earned an
after tax interest rate of 3.0% for the half year.
Cape Town
20 November 2006
Sponsor in South Africa
Merrill Lynch South Africa (Pty) Limited
Date: 20/11/2006 10:43:05 AM Produced by the JSE SENS Department
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