South African pulp and paper conglomerate Sappi announced on Friday that it had repurchased an additional 7,174-million of its own shares representing 3% of its ordinary share capital, at a cost of R693,142-million — or around $82,4-million.
The purchases were made on the open market through a wholly owned subsidiary, acting in terms of the general authority granted by shareholders at general meetings.
This has resulted in a cumulative purchase of 16,898-million shares — 7,1% of Sappi’s ordinary share capital, the company said.
The highest price paid was R150 and the lowest price was R59, 72. The purchases were made during the period February 2 to September 4 this year.
In terms of the general authority, 20,058-million shares may be purchased — or 10% of Sappi’s ordinary share capital. The purchase was funded from available cash resources.
Based on Sappi’s results for the nine-month period ended June 30 this year, and on the assumption that the general purchase had been completed on October 1ast year, earnings per share and headline earnings per share are unaffected.
The purchases will result in a 0,1% decline in the net asset value and net tangible asset value per Sappi share to 1,058c from 1,059c, the group said.
The Sappi shares acquired in terms of the general purchase are treated as treasury shares until they are sold. They have no voting rights and are disregarded in calculating earnings and net asset value per share.
It is Sappi’s current intention to continue to transfer, from time to time, Sappi shares acquired to participants of The Sappi Limited Share Incentive Scheme.
As the shares acquired in terms of the general purchase were acquired by a subsidiary (and not by Sappi itself), application will not be made to any of the stock exchanges on which Sappi shares are listed for the reduction in the number of Sappi shares listed, it said.
On the JSE Securities Exchange South Africa, Sappi shares were up 1,54%, or 150c, to R99. ‒- I-Net Bridge