MUSTEK LIMITED - Repurchase of ordinary shares in Mustek

Release Date: 28/05/2018 12:04
Code(s): MST
 
Wrap Text
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 3 037 370 ordinary shares in the
issued share capital of Mustek on the open market for a purchase consideration (including
costs) in aggregate of R17 070 627,18 (“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 2 November 2017 and comprises 3,89% 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 2 November 2017 and continued on a day-to-day
basis as market conditions allowed and in accordance with the JSE Limited (“JSE”) Listings
Requirements until 25 May 2018. 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 650 cents and 500 cents per share respectively.

3. Extent of general authority outstanding
The extent of the general authority outstanding is 12 570 104 ordinary shares, representing
16,11% of the total issued ordinary share capital of Mustek at the time the authority was
granted.

4. Source of funds
The general repurchase has been funded from available cash resources.

5. Financial information
Cash balances decreased by R17 070 627,18 as a result of the general repurchase. The impact
on other areas of the Company’s financial information is immaterial.

6. 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 2017;
*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.


7. JSE listing
2 037 370 shares were delisted and cancelled on 25 May 2018 and 1 000 000 shares will be
cancelled and delisted in due course, where after Mustek will have 75 000 000 shares in issue.

8. Conclusion
Mustek will continue to repurchase securities as and when opportunities arise.

Midrand
28 May 2018
Sponsor: Deloitte & Touche Sponsor Services Proprietary Limited

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