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TRENCOR LIMITED - General repurchase of shares

Release Date: 10/12/2018 14:57
Code(s): TRE     PDF:  
Wrap Text
General repurchase of shares

TRENCOR LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1955/002869/06)
Share code: TRE
ISIN: ZAE000007506
("Trencor" or "the Company")

GENERAL REPURCHASE OF SHARES

1.      INTRODUCTION

        Shareholders are advised that, in terms of the general authority granted by shareholders at the
        Company's annual general meeting held on 10 August 2018 ("General Authority"), the Company has
        cumulatively repurchased from shareholders, through the order book operated by the JSE Limited, and
        in a series of unrelated transactions without any prior understanding or arrangement between the
        Company and these shareholders, 3 390 178 ordinary shares ("Shares") in the aggregate, representing
        1,91% of the Company's issued share capital at the time of the General Authority ("Repurchase").

2.      DETAILS OF THE REPURCHASE

        The details of the Repurchase, conducted between 4 October 2018 and 6 December 2018 are as follows:

        Total number of Shares repurchased                                                            3 390 178
        Total value of Shares repurchased                                                          R100 000 000
        Highest price paid per Share repurchased                                                         R31,00
        Lowest price paid per Share repurchased                                                          R27,66
        The number of Shares which may still be repurchased by the Company in terms
        of the General Authority                                                                     32 023 424
        The percentage of Shares which may still be repurchased by the Company in
        terms of the General Authority                                                                   18,09%
        Shares in issue at the date the General Authority was granted                               177 068 011
        Shares in issue after the Repurchase                                                        173 677 833
        Number of Shares held in treasury after the Repurchase                                              Nil

        Application has been made to the JSE for the delisting of the Repurchased Shares, expected to occur on
        or before 18 December 2018.

3.      STATEMENT BY THE BOARD

        The Board has considered the impact of the Repurchase and is of the opinion that for a period of twelve
        months following the date of the Repurchase:

        3.1     the Company and its subsidiaries ("the Group") will be able, in the ordinary course of business,
                to pay its debts;

        3.2     the assets of the Company and the Group will be in excess of the liabilities of the Company and
                the Group, measured in accordance with the accounting policies used in the latest audited Group
                annual financial statements;

        3.3     the share capital and reserves of the Company and the Group will be adequate for ordinary
                business purposes; and

        3.4     the working capital of the Company and the Group will be adequate for ordinary business
                purposes.

4.      SOURCE OF FUNDS

        The Repurchases have been funded from available cash resources.

5.      FINANCIAL INFORMATION

        The Company's cash balances decreased by R100 359 776 as a result of the Repurchase and, on
        cancellation of the Repurchase Shares, share capital, share premium and reserves will reduce by the
        same amount. The interest foregone on the cash required to effect the Repurchase amounts to R554 410
        before tax, assuming an average interest rate of 6,1% earned in the previous financial period. The
        Repurchase will have the effect of reducing the number of shares in issue used for purposes of the
        earnings per share and headline earnings per share calculations by 3 390 178 Shares.

Cape Town
10 December 2018

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

www.trencor.net

Date: 10/12/2018 02:57:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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