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VILLAGE MAIN REEF LIMITED - Financial effects and withdrawal of cautionary

Release Date: 03/05/2013 08:00
Code(s): VIL     PDF:  
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Financial effects and withdrawal of cautionary

VILLAGE MAIN REEF LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005703/06)
Share Code: VIL ISIN: ZAE000154761
(“Village” or “the company”)

FINANCIAL EFFECTS AND WITHDRAWAL OF CAUTIONARY

INTRODUCTION

Shareholders are referred to the announcement released on SENS on 18 March 2013, as well as the
announcement released on SENS on 02 May 2013, whereby shareholders were advised that Village has entered
into a binding funding agreement (the “transaction”) with Continental Coal Limited (“Continental”). Village is
happy to inform shareholders that it has received the necessary approval from the South African Reserve Bank,
which was the only outstanding condition to the transaction.

FINANCIAL EFFECTS
The unaudited pro forma financial effects (the “financial effects”) of the transaction on Village’s earnings per
share, headline earning per share, diluted earnings per share and diluted headline earnings per share for the six
months ended 31 December 2012 are set out below. The financial effects of the transaction on Village’s net
asset value and net tangible asset value per share are not significant (less than 3%) and therefore have not been
disclosed.

The financial effects are the responsibility of the directors of Village and have been prepared for illustrative
purposes only, to provide information on how the transaction may have impacted on the historical financial
results of Village for the six months ended 31 December 2012. These financial effects have not been reviewed
by the company’s auditors.
Due to its nature, the financial effects may not give a fair reflection of Village’s financial position, changes in
equity, results of operations and cash flows subsequent to the transaction.

The table below reflects the financial effects of the transaction on a Village shareholder:

                                                 Before the transaction   After the transaction           %
                                                                (cents)                 (cents)      change

Earnings per share                                                 5.92                    5.73      -3.15%
Headline earnings per share                                        5.90                    5.72      -3.16%
Diluted earnings per share                                         5.79                    5.60      -3.15%
Diluted headline earnings per share                                5.77                    5.59      -3.16%

Notes and assumptions:
-    The figures set out in the “Before the transaction” column above have been extracted from reviewed
     interim results for the 6 months ended 31 December 2012 (“the interim results”).
-    The figures set out in the "After the transaction" column above reflect the pro forma effects on the interim
     results resulting from the acquisition of 19.9% of the equity of Continental.
-    The acquisition is assumed to have been implemented on 1 July 2012 for earnings and headline earnings
     per share purposes and on 31 December 2012 for net asset and net tangible asset value per share purposes.
-    It is assumed that the repurchases were funded out of the available cash resources of the company with an
     after tax interest cost of 5% per annum.
-    Where applicable an exchange rate of R9.69 to the Australian Dollar has been used, being the rate as at
     28 March 2013.

WITHDRAWAL OF CAUTIONARY

Following the publication of the terms and financial effects of the transaction caution is no longer required to be
exercised by shareholders when dealing in their securities in the company.

Johannesburg
3 May 2013

Sponsor
Java Capital

Date: 03/05/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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