AECI hereby announces the repurchase of 3 987 500 ordinary shares (representing 3,12% of the issued ordinary shares), since and in accordance with the general authority granted by the Company’s shareholders at the annual general meeting held on 1 June 2015 (“the repurchase”).
|2.||AUTHORISED REPURCHASE LIMITS |
In terms of the special resolution:
A maximum of 6 612 057 ordinary shares could be repurchased in terms of the general authority obtained from shareholders.
Details are as follows:
The repurchases were effected through the order book operated by the JSE Limited (“JSE”) and done without any prior understanding or arrangement between AECI and the counter party.
The repurchases were effected from 12 August 2015 to 13 October 2015, both dates inclusive.
|4.||SOURCE OF FUNDS |
Repurchases to date have been, and future repurchases will also be, funded with cash generated from operations and with general borrowing facilities available to the Company.
|5.||OPINION OF THE DIRECTORS |
The Directors of AECI have considered the impact of the repurchases and are of the opinion that:
|6.||IMPACT ON FINANCIAL INFORMATION |
The repurchase of shares will have the effect of reducing the number of shares in issue by 3 987 500 or 3,12% of the issued share capital. Had the repurchase of shares occurred on 1 January 2015 it would have increased interest expense and short-term borrowings, and would also have increased earnings per share for the half-year ended 30 June 2015 by 21 cents. Furthermore had the repurchase occurred on 30 June 2015, it would have impacted the general pool of funds by R380 697 581,68 and decreased the net asset value per share by 105 cents.
|7.||JSE LISTING |
The ordinary shares that were repurchased in August and September have been cancelled and de-listed. Those repurchased in October will be cancelled and delisted at month end.
15 October 2015
RAND MERCHANT BANK (A division of FirstRand Bank Limited)