BLUE LABEL TELECOMS LIMITED - Repurchase of ordinary shares

Release Date: 05/09/2018 15:30
Code(s): BLU
 
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Repurchase of ordinary shares

Blue Label Telecoms Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/022679/06)
Share code: BLU ISIN: ZAE000109088
(“Blue Label”)

REPURCHASE OF ORDINARY SHARES

INTRODUCTION

In terms of a general authority granted by Blue Label shareholders at the Company’s annual
general meeting held on 22 January 2018, a special resolution was passed to approve the
repurchase of its ordinary shares.

AUTHORISED LIMITS

In terms of the special resolution

   (a) The general authority is limited to a maximum of 20% of Blue Label’s’ issued ordinary
       share capital being 174,901,808.

   (b) Any repurchase may not be made at a price greater than 10% above the weighted
       average of the market value of the ordinary shares for the five business days immediately
       preceding the date of such repurchase.

   (c) The repurchase of shares being affected through the order book operated by the JSE
       trading system and done without any prior understanding or arrangement between Blue
       Label and the counter party.

IMPLEMENTATION

Details are as follows:

Total number of ordinary shares repurchased during the period
(22 August 2018 to 04 September 2018)                                            26,235,271

Total value of ordinary shares repurchased                                     R182,960,971

Highest price paid per ordinary share                                                 R7.28

Lowest price paid per ordinary share                                                  R6.80

Average price paid per ordinary share including costs                                 R7.01

The number of ordinary shares which may still be purchased
by Blue Label in terms of the general authority                                 148,666,537

The percentage of ordinary shares which may still be repurchased
by Blue Label in terms of the general authority                                         17%

Ordinary shares in issue on 31 May 2018, the date of Blue Label’s
most recent published financial year end results                                946,509,041

Ordinary shares in issue on 30 November 2017, the date of Blue Label’s
most recent published half year end results                                     874 509 041

Treasury shares held after the repurchase                                         9,452,963


SOURCE OF FUNDS

The repurchases to date have been funded from available cash resources and it is intended that
all future purchases will also be funded from available cash resources.

OPINION OF THE DIRECTORS

The directors of Blue Label have considered the impact of the share repurchase and are of the
opinion that:

   -   Blue Label and its subsidiaries will be able, in the ordinary course of business, to repay its
       debts for a period of 12 months from date of this announcement.

   -   The assets of Blue Label and its subsidiaries are in excess of the liabilities, measured in
       accordance with the accounting policies used in the audited results for the year ended 31
       May 2018.

   -   The ordinary share capital and reserves of Blue Label and its subsidiaries will be adequate
       for a period of 12 months from the date of this announcement.

   -   The working capital of Blue Label and its subsidiaries will be adequate for a period of 12
       months from the date of this announcement.

FINANCIAL INFORMATION

Blue Label’s cash balance decreased by R183,945,230 as a result of the repurchase and costs
related thereto. The repurchased shares will be cancelled and the listing under the JSE will be
terminated.

For and on behalf of the Board


Sandton
05 September 2018

Sponsor:
Investec Bank Limited

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