Dual-listed telecommunications group Telkom on Monday announced the repurchase of 22,257-million Telkom ordinary shares — or 4% of issued ordinary shares — through the order book operated by the JSE Securities Exchange South Africa (JSE).
The value of ordinary shares repurchased is R1,714-billion with prices ranging between the lowest of R73,50 per share and R82,92 per share. Number of shares outstanding in terms of authority is 89,148-million.
This repurchase is in accordance with the general authority granted by its shareholders at the annual general meeting held on January 27. The repurchases were effected in accordance with the JSE listings requirements.
“In terms of the special resolution the general authority is limited to a maximum of 20% of Telkom’s issued share capital. A maximum of 111,406-million ordinary shares could be repurchased in terms of the general authority obtained from shareholders,” the group said in a statement.
“The repurchase of the 22,257-million Telkom ordinary shares was executed between March 24 and September 9, excluding closed periods. No shares were repurchased between 15 June 2004 and 18 June 2004, the period over which Thintana Communications LLC placed 14,9% of their shareholding.”
All the shares have been repurchased by subsidiaries of Telkom and are being held in the subsidiary companies as treasury stock. Repurchases have been funded from available cash resources.
Telkom directors have considered the impact of the repurchases and are of the opinion that the group will be able, in the ordinary course of business, to pay their debts for a period of 12 months from the date of this announcement.
They added that the working capital of Telkom and the group would be adequate for a period of 12 months from the date of this announcement. – I-Net Bridge