BSI STEEL Limited
(Incorporated in the Republic of South Africa) (Registration number 2001/023164/06)
JSE code: BSS
ISIN: ZAE000125134
("BSI" or "the Company")
GENERAL REPURCHASE OF 3.05% OF ORDINARY SHARES IN ISSUE ("ORDINARY SHARES") 1. IntroductionIn accordance with paragraph 11.27 of the JSE Limited Listings Requirements, BSI shareholders ("Shareholders") are advised that BSI has, in terms of the general authority to repurchase BSI securities granted by Shareholders at the Company's annual general meeting held on 6 September 2016 ("General Authority"), repurchased 21 929 223 Ordinary Shares ("General Repurchase"). This represents 3.05% of ordinary share capital in issue as at the date that the General Authority was granted. The Ordinary Shares have been repurchased for a value of R 8 694 515.88 out of the Company's available cash resources.
2. Details of the General Repurchase
Dates of the General Repurchase | Number of Ordinary Shares repurchased | Highest price per Ordinary Share | Lowest price per Ordinary Share |
13 February 2016 to 19 May 2017 | 21 929 223 | R0.47 | R0.35 |
The General Repurchase was effected through the order book operated by the JSE trading system without any prior understanding or arrangement between the Company and the counter parties.
The Ordinary Shares acquired in terms of the General Authority have not been delisted and cancelled but rather held as treasury shares. Consequently, following the General Repurchase, 44 912 772 Ordinary Shares are held as treasury shares.
BSI is entitled to repurchase a further 27 072 728 Ordinary Shares (3.76% of the Ordinary Shares in issue as at the date of the General Authority), in terms of the General Authority, which is valid until the next annual general meeting of the Company.
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Impact of the General Repurchase on financial information
The impact of the General Repurchase on the financial information of the Company has not been material and has resulted in a cash outflow of R 8 746 748.52. Interest earned on the cash resources used to acquire the Ordinary Shares will be forgone.
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Board statement
The board has considered the effect of the General Repurchase and is of the opinion that, for a period of 12 months following the date of this announcement:
the Company and the group will be able to repay their debts, in the ordinary course of business;
the assets of the Company and the group will be in excess of the liabilities of the Company and the group;
the share capital and reserves of the Company and the group will be adequate for ordinary business purposes of the Company and the group; and
the working capital of the Company and the group will be adequate for ordinary business purposes.
- Repurchase programme
Of the 21 929 223 Ordinary Shares repurchased, 9 609 583 Ordinary Shares were repurchased pursuant to a repurchase programme that was put in place, in accordance with the JSE Limited Listings Requirements, prior to the time that the Company entered into a prohibited period.
Johannesburg
22 May March 2017
Designated Advisor
Sasfin Capital (a division of Sasfin Bank Limited)
BSi Steel Limited published this content on 22 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 May 2017 08:50:20 UTC.
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