A E C I Limited - Repurchase AnnouncementRelease Date: 15/10/2015 10:15:00 Code(s): AFE
Incorporated in the Republic of South Africa
(Registration No. 1924/002590/06)
Share code: AFE
ISIN No. ZAE000000220
(?AECI? or ?the Company?)
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
2. AUTHORISED REPURCHASE LIMITS
In terms of the special resolution:
(a) the general authority is limited to a maximum of 5,00% of AECI?s issued share capital;
(b) any repurchase may not be made at a price greater than 10,00% above the weighted
average of the market value of the ordinary shares for the five business days
immediately preceding the date(s) of such repurchase.
A maximum of 6 612 057 ordinary shares could be repurchased in terms of the general
authority obtained from shareholders.
Details are as follows:
Total number of ordinary shares repurchased: 3 987 500
Total value of ordinary shares repurchased: R380 697 581,68
Highest price paid per ordinary share: 10 000,00 cents
Lowest price paid per ordinary share: 8 800,00 cents
Average price paid per ordinary share, including Brokerage Fees, VAT
and Securities Tax: 9 577,00 cents
Number of ordinary shares which may still be repurchased by the
Company in terms of the general authority: 2 624 557
Percentage of ordinary shares which may still be repurchased by the
Company in terms of the general authority: 1,88
Number of shares held in treasury after the repurchase (unchanged) 11 884 699
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
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
5.1 The Company and the AECI Group (?the Group?) will be able, in the ordinary course
of business, to pay its debts for a period of 12 months from the date of this
5.2 the assets of the Company and the Group will be in excess of the liabilities of the
Company and the Group for a period of 12 months after the date of this
announcement, measured in accordance with the accounting policies used in the latest
audited Group annual financial statements;
5.3 the ordinary share capital and reserves of the Company and the Group will be adequate
for ordinary business purposes for a period of 12 months from the date of this
5.4 the working capital of the Company and the Group will be adequate for ordinary
business purposes for a period of 12 months from the date of this announcement.
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
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)
Date: 15/10/2015 10:15:00 Supplied by www.sharenet.co.za
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