A E C I LIMITED - Repurchase announcement

Repurchase announcement

AECI LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1924/002590/06)
Share code: AFE     
ISIN No. ZAE000000220
(“AECI” or “the Company”)


REPURCHASE ANNOUNCEMENT

1.   INTRODUCTION

     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)     the general authority is limited to a maximum of 5,00% of AECI’s issued share capital;
             and
     (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.

3.   IMPLEMENTATION

     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
                                               2


      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:

      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
             announcement;

      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
             announcement; and

      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
      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.

Woodmead, Sandton
15 October 2015

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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