HUDACO INDUSTRIES LIMITED - Announcement regarding a general repurchase of shares

Announcement regarding a general repurchase of shares

HUDACO INDUSTRIES LIMITED
(“Hudaco” or the “Company”)
Incorporated in the Republic of South Africa
Registration number 1985/004617/06
Share code: HDC & ISIN: ZAE000003273

ANNOUNCEMENT REGARDING A GENERAL REPURCHASE OF SHARES

1.   Introduction

     Hudaco shareholders are advised that the Company has repurchased 1 024 600 Hudaco ordinary shares
     (“Shares”) in terms of a general approval granted by shareholders at the Company’s annual general meeting
     (the “Authority”) held on 19 March 2020 (the “General Repurchase”).

2.   Details of the General Repurchase

     Dates of the General Repurchase:                4 September 2020 to 26 November 2020
     Number of Shares repurchased:                   1 024 600
     Lowest repurchase price per Share:              R68.01
     Highest repurchase price per Share:             R92.90
     Weighted average price per Share:               R79.51
     Total value of Shares repurchased:              R81 470 986.30 (excluding transaction costs)
     Total cost of Shares repurchased:               R81 818 293.15 (including transaction costs)

     The process to delist and cancel the repurchased Shares will commence immediately (the “Cancellation”) and
     will be concluded on or about 8 December 2020.

     The General Repurchase represents 3% of the Company’s total issued share capital. Post the General
     Repurchase, Hudaco will still hold 2 507 828 Shares as treasury shares, representing 7.57% of the Company’s
     issued share capital post the Cancellation.

     Following the General Repurchase, the extent of the Authority to repurchase shares outstanding is 557 685
     ordinary shares, representing 1.63% of the issued share capital of Hudaco, at the time the Authority was
     granted. There is no board resolution in place to continue the repurchase programme at this stage and no
     shares will be repurchased during the closed period which the Company will be entering after its financial year
     end on 30 November 2020.

3.   Source of funds

     The General Repurchase was funded from available cash resources, including the proceeds of R35 million,
     received in September 2020, of the settlement of certain legal proceedings, as announced on SENS on 31 August
     2020.

4.   Statement by the board of directors of Hudaco (the “Board”)

     The Board has considered the effect of the General Repurchase and is of the opinion that, for a period of twelve
     months following the date of this announcement:

     4.1. the Company and the group will be able in the ordinary course of business to pay its debts;

     4.2. the assets of the Company and the group will exceed the liabilities of the Company and the group. For this
          purpose, the assets and liabilities were recognised and measured in accordance with the accounting
          policies used in the latest audited annual group financial statements;
     4.3. the share capital and reserves of the Company and the group will be adequate for ordinary business
          purposes;

     4.4. the working capital of the Company and the group will be adequate for ordinary business purposes; and

     4.5. the Company and the group have passed the solvency and liquidity tests and since the tests were
          performed, there have been no material changes to the financial position of the Company or the group.

5.   Impact of the General Repurchase on financial information

     The General Repurchase has no significant impact on the financial information of the Company. Because it was
     partially funded by the proceeds of the settlement of a legal matter as described above, the net impact on
     borrowings is that they are R46.8m higher than they would otherwise have been. The number of Shares in issue
     will reduce by 1 024 600, with the number of Shares in issue post the General Repurchase amounting to
     33 128 931 (net of treasury shares: 30 621 103).

6.   Compliance with paragraph 5.72 of the JSE Limited Listings Requirements (“JSE Listings Requirements”)

     The General Repurchase was effected through the order book operated by the JSE trading system and done
     without any prior understanding or arrangement between the Company and the counter parties. Accordingly,
     the Company has complied with paragraph 5.72 of the JSE Listings Requirements.


30 November 2020

Corporate advisor and Sponsor
Nedbank Corporate and Investment Banking

Date: 30-11-2020 03:30:00
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