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ILV - Illovo Sugar Limited - Capital reduction out of share premium in respect
of the year ended 31 March 2010
ILLOVO SUGAR LIMITED
(Incorporated in the Republic of South Africa)
Company registration number 1906/000622/06
Share Code: ILV
ISIN: ZAE000083846
("Illovo" or "the Company")
CAPITAL REDUCTION OUT OF SHARE PREMIUM IN RESPECT OF THE YEAR ENDED 31 MARCH
2010
As announced in the results announcement on SENS today, the board of directors
has approved a cash distribution (in lieu of the final dividend) by way of a
reduction of capital out of share premium of 54.0 cents per share, for the year
ended 31 March 2010, to Illovo shareholders recorded in the register on Friday,
6 August 2010 ("the Distribution").
The payment of the Distribution is subject to the passing of the requisite
ordinary resolutions at the annual general meeting to be held at 14:00, on
Wednesday, 21 July 2010. The Notice of the annual general meeting containing
full details of the Distribution and convening the annual general meeting will
be posted to shareholders on or about 22 June 2010.
In compliance with the requirements of Strate, the electronic settlement and
custody system used by the JSE Limited, the Company has determined the following
salient dates for the payment of the Distribution:
2010
Last day to trade cum the Distribution Friday, 30 July
Shares commence trading ex the Distribution Monday, 2 August
Record date Friday, 6 August
Payment date Tuesday, 10 August
Illovo shareholders will not be permitted to dematerialise / rematerialise their
shares between Monday, 2 August 2010 and Friday, 6 August 2010, both days
inclusive.
PRO FORMA FINANCIAL EFFECTS OF DISTRIBUTION OUT OF SHARE PREMIUM
The illustrative pro forma financial effects set out below have been prepared to
assist Illovo shareholders to assess the impact of the specific payment on the
net asset value ("NAV") and the tangible net asset value ("TNAV") per ordinary
share. The material assumptions are set out in the notes following the table.
The pro forma financial effects are the responsibility of the directors and are
provided for illustrative purposes only.
Shareholders are advised that, because the Distribution is being made in lieu of
a final dividend that would have been paid had no capital been available for
distribution, there will be no additional reduction in the cash and cash
equivalents and equity attributable to ordinary shareholders of the Company.
The financial effects have been prepared for illustrative purposes only, and
because of their nature, may not give a fair presentation of Illovo`s financial
position, changes in equity, results of operations or cash flows.
Actual Impact of Proforma
before the after the
distributio proposed distributio
n (1) distributio n
n (2)
Cash and cash
equivalents (R million) 1,345.4 (248.5) 1,096.9
Total equity (3) (R
million) 6,314.7 (248.5) 6,066.2
NAV (4) (cents per
share) 1,372.3 1,318.3
TNAV (4) cents per
share) 1,333.4 1,279.4
(1) As per the published audited results of Illovo for the year ended 31 March
2010.
(2) Adjustments to the cash and cash equivalents and total equity were made on
the assumption that the distribution to shareholders of 54.0 cents per share was
paid on 31 March 2010.
(3) Total equity comprises the following line items:
Actual Impact of Proforma
before the after the
distributio proposed distributio
n (1) distributio n
n (2)
Share Capital -
18.4 18.4
Share Premium -
3,057.3 3,057.3
Share-based payments -
reserve 13.1 13.1
Non-distributable -
reserves (117.1) (117.1)
Distribution reserve -
248.5 (248.5)
Retained earnings -
2,282.4 2,282.4
Non-controlling -
interest 812.1 812.1
Total equity 6,314.7 (248.5) 6,066.2
(4) The calculation of NAV per share and TNAV per share as at 31 March 2010 has
been based on 460 159 638 ordinary shares in issue. The Total equity used in the
calculation of TNAV per share is calculated as set out below:
Total equity
6,314.7 (248.5) 6,066.2
Intangible assets
(179.1) (179.1)
6,135.6 (248.5) 5,887.1
For income tax purposes, shareholders are advised that the Distribution will be
regarded as a return of capital and therefore consideration should be given to
the potential capital gains tax consequences. Illovo shareholders are,
therefore, advised to consult their tax advisors with regard to how they may be
impacted by the Distribution.
On behalf of the Board
GD Knox
Group Secretary
Mount Edgecombe
Sponsor: J.P. Morgan Equities
31 May 2010
Date: 31/05/2010 07:06:02 Supplied by www.sharenet.co.za
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