Novus Holdings’ Subsidiary Repurchases 3.01% of Company’s Shares

In a move aligned with the shareholders’ mandate, Novus Holdings Limited’s subsidiary, Novus Packaging Proprietary Limited, has successfully repurchased 10,438,968 Novus ordinary shares, constituting 3.01% of the Company’s issued share capital. The announcement, made in compliance with the JSE Limited Listings Requirements, sheds light on the details and implications of the transaction.

Details of the Repurchase

The repurchase, executed through the JSE order book on 17 January 2024, saw Novus Packaging acquire the shares at a price of R4.36 per security. The total value of the repurchased shares amounted to a substantial R45,513,900.48.

Post-Repurchase Share Status

Following the repurchase, Novus Holdings now holds 35,773,055 shares as treasury shares, representing 10.3194% of the Company’s ordinary shares. The company plans to apply to the JSE for the delisting and cancellation of 1,142,086 repurchased shares in the near future.

Board’s Perspective

The board of directors has carefully considered the impact of the repurchase. Their opinion, articulated in the announcement, outlines the following points for the next 12 months:

• The ability of the Company and its subsidiaries to repay debts in the ordinary course of business.
• The expectation that consolidated assets will exceed consolidated liabilities, measured as per the accounting policies used in the audited results for the year ended 31 March 2023.
• The belief that ordinary share capital and reserves of the Company and the Group will be adequate for ordinary business purposes.
• Assurance that the working capital of the Company and the Group will be sufficient for ordinary business purposes.

Financial Impact

As a consequence of the repurchase, Novus Holdings’ cash balance has decreased by R45,627,955.43, including transaction costs of R114,054.95. This reduction will influence the number of shares in issue for the calculation of earnings per share and headline earnings per share, with 10,438,968 shares being weighted according to the date of the Repurchase.

Looking Forward

With the delisting and cancellation of a portion of the repurchased shares in the pipeline, Novus Holdings maintains a general authority to repurchase an additional 58,892,302 ordinary shares, constituting 16.99% of the total issued share capital of the Company as at the beginning of the financial year.