South African food group Tiger Brands said on Thursday that it has repurchased a further 2Â 500Â 212 Tiger Brands ordinary shares — or 1,49% of the issued ordinary shares — on the open market on the JSE Securities Exchange. The shares are valued at R472,4-million.
The repurchase was made in accordance with the general authority granted by shareholders at the annual general meeting held in February 2004.
Taking into account the 2,616-million shares (1,56%) repurchased up to 30 September 2004, the cumulative number of Tiger Brands shares repurchased in terms of this general authority is 5,116 million shares (3,04%) at the close of business on 8 February 2005, the company said.
In terms of the special resolution passed on 23 February 2004, the general authority is limited to a maximum of 10% of Tiger Brands issued share capital and any repurchase may not be made at a price greater than 10% above the weighted average of the market value of the shares for the five business days immediately preceding the date of the repurchase.
A maximum of 16,814-million shares could be repurchased in terms of the general authority obtained from shareholders.
The repurchases of the 5,116-million Tiger Brands shares (3,04%) commenced on 31 May 2004 and continued on a day-to-day basis as market conditions allowed except for the mandatory closed period before the announcement of the results for the year ended 30 September 2004 and a period prior to the announcement of the terms of the unbundling of The Spar Group, the company said.
The highest price paid was R98,89 and the lowest price paid was R87,88. The average price paid per share was R92,34.
The repurchases were funded from available cash resources.
The shares have been repurchased by a wholly-owned subsidiary of Tiger Brands and none of the shares will be cancelled nor will the JSE listing in respect of those shares be terminated, it said. – I-Net Bridge