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Repurchase of ordinary shares in Mustek
MUSTEK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/070161/06)
Share Code: MST
ISIN Code: ZAE 000012373
(“Mustek” or “the Company”)
REPURCHASE OF ORDINARY SHARES IN MUSTEK
1. Introduction
Shareholders are hereby advised that Mustek has acquired 3 893 911 ordinary shares in the
issued share capital of Mustek on the open market for a purchase consideration (including
costs) in aggregate of R22 354 754,99 (“the general repurchase”). The general repurchase
was effected in terms of a general authority to Mustek’s directors (“the directors”), which was
granted in terms of a special resolution passed by the members at Mustek’s Annual General
Meeting (“AGM”) held on 11 December 2015 and comprises 3,88% of the total issued
ordinary shares of Mustek at the date of the AGM. Mustek does not hold any treasury shares.
2. Implementation
The general repurchase commenced on 11 December 2015 and continued on a day-to-day
basis (excluding closed periods) as market conditions allowed and in accordance with the JSE
Limited (“JSE”) Listings Requirements until 1 September 2016. The Company confirms that
the repurchases were effected through the order book operated by the JSE and done without
any prior understanding or arrangement between the Company and the counter parties. The
highest and lowest prices paid by Mustek for the ordinary shares were 785 cents and 480
cents per share respectively.
3. Extent of general authority outstanding
The extent of the general authority outstanding is 18 626 782 ordinary shares, representing
18,55% of the total issued ordinary share capital of Mustek at the time the authority was
granted.
4. Sources of funds
The general repurchase has been funded from available cash resources.
5. Opinion of directors
The directors have considered the effect of the general repurchase and are satisfied that:
* Mustek and Mustek’s subsidiaries (“the Mustek 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;
* the assets of Mustek and the Mustek group will be in excess of the liabilities of Mustek and
the Mustek group for a period of 12 months from the date of this announcement. For this
purpose, the assets and liabilities should be recognised and measured in accordance with the
accounting policies used in the audited financial statements for the year ended 30 June 2016;
*the ordinary capital and reserves of Mustek and the Mustek group will be adequate for a
period of 12 months from the date of this announcement; and
*the working capital of Mustek and the Mustek group will be adequate for a period of 12
months from the date of this announcement.
6. Financial effects
The pro forma financial effects set out below are the responsibility of the directors of Mustek
and are provided for illustrative purposes only. Due to the nature of pro forma financial
information, it may not give a fair reflection of shareholders` financial position, changes in
equity, results of operations or cash flows after the repurchase. Accounting policies of Mustek
for the year ended 30 June 2016 have been used in the compilation of the pro forma financial
effects.
The pro forma financial effects on the earnings, headline earnings, net asset value and net
tangible asset value per ordinary share, before and after the general repurchase are set out
below:
Notes Before After Change
(cents) (cents) (%)
Earnings per ordinary share 1 74,13 76,11 2,68
Headline earnings per ordinary share 1 76,88 78,97 2,73
Net asset value per ordinary share 2 1 008,08 1 026,04 1,78
Net tangible asset value per ordinary share 2 939,65 954,78 1,61
Number of shares in issue 100 433 911 96 540 000 (3,88)
Notes:
1. The amounts in the “Before” column represent the audited earnings and headline earnings
per share disclosed in the financial results for the year ended 30 June 2016. The amounts in
the “After” column represent the earnings and headline earnings per share after the general
repurchase on the following assumptions:
. the general repurchase was effective 1 July 2015; and
. an after tax rate of 4,32% per annum on the cash resources required to fund the general
repurchase, which adjustment is of a continuing nature.
2. The amounts in the “Before” column represent the net asset value and net tangible asset
value per share as disclosed in the audited financial results for the year ended 30 June 2016.
The amounts in the “After” column represent the net asset value and net tangible asset value
based on the financial results for the year ended 30 June 2016, adjusted for the general
repurchase, had it been effected on 30 June 2016.
3. There are no other post balance sheet events requiring adjustments to the pro forma
financial information.
7. JSE listing
2 433 911 of the ordinary shares that have been repurchased have already been cancelled and
delisted. The remaining 1 460 000 ordinary shares that have been repurchased will be
cancelled and delisted in due course.
8. Conclusion
Mustek will continue to repurchase securities as and when opportunities arise.
Midrand
2 September 2016
Sponsor: Deloitte & Touche Sponsor Services Proprietary Limited
Date: 02/09/2016 01:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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