ARGENT INDUSTRIAL LIMITED - General Repurchase of Ordinary Shares

General Repurchase of Ordinary Shares

ARGENT INDUSTRIAL LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1993/002054/06)
Share code: ART
ISIN: ZAE000019188
(“Argent” or “the Company” or “the group”)

GENERAL REPURCHASE OF ORDINARY SHARES

In the notice of the Argent annual general meeting held 20 August 2019 (“the AGM”),
shareholders approved the repurchase of ordinary shares by way of a special resolution.
Shareholders were further advised that any repurchases under the general authority
would be at market value in accordance with the provisions set out under the relevant
special resolution. At the AGM, shareholders granted a general authority to the board
of Argent to repurchase up to 20% of the issued ordinary share capital of Argent.

Shareholders are hereby advised that Argent has repurchased 2 500 000 ordinary
shares, representing 3.1% of the issued ordinary share capital as at the date of the
authority to repurchase the ordinary shares was granted, out of the Company’s available
cash resources. The ordinary shares were repurchased for an aggregate value of
R13 909 376.55.

    Date of          Number of      Highest price      Lowest price   Aggregate value
    repurchase       ordinary       per ordinary       per ordinary
                     shares         share              shares
                     repurchase
    
    11 December      2 500 000      R5.78              R5.45          R13 909 376.55
    2019 to 20
    January 2020

The repurchases were made in terms of the general authority granted by shareholders
at the AGM and were effected through the order book operated by the JSE trading
system without any prior understanding or arrangement between the Company and the
counterparties. The general repurchase of ordinary shares has been complied with in
terms of paragraph 5.72(a) of the JSE Listings Requirements.

Prior to the Repurchase, the Company had repurchased in aggregate 5 724 348
ordinary shares. The total number of ordinary shares repurchased since the AGM is
8 224 348, representing 10.19% of the issued ordinary share capital as at the date of
the AGM.

The ordinary shares repurchased have been de-listed and will be cancelled
immediately.

Argent is entitled to repurchase a further 7 917 306 ordinary shares (9.81% of the
ordinary shares in issue as at the date of the authority), in terms of the current general
authority, which is valid until Argent’s next annual general meeting.

As at the date of this announcement, the Company held 3 545 557 ordinary shares in
treasury, which shares includes the shares that are the subject of this announcement.
The ordinary shares were repurchased from excess working capital resources of the
Company and the interest that would have been generated for the group’s banking
facility is minimal.

OPINION OF THE BOARD OF THE COMPANY

The board of Argent has considered the effect of the repurchases and is of the opinion
that, for a period of 12 months following the date of this announcement:

-    the Company and the Group will be able, in the ordinary course of business, to
     repay their debts for a period of 12 months after the date of this announcement;
-    the consolidated assets of the Company and the Group will be in excess of the
     consolidated liabilities of the Company and the Group for a period of 12 months
     after the date of this announcement;
-    the Company’s and the Group’s share capital and reserves will be adequate for
     the purposes of the business of the Company and the Group for a period of 12
     months after the date of this announcement; and
-    the Company and the Group will have sufficient working capital for ordinary
     business purposes for a period of 12 months after the date of this announcement.

Umhlanga
28 January 2020

Sponsor: 
PSG Capital

Date: 28-01-2020 02:39:00
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