Santova Limited Completes Share Repurchase, Boosts Liquidity

Santova Limited, a leading player in the industry, has successfully concluded a general repurchase of its shares, making a strategic move to enhance liquidity and optimize its capital structure.

General Repurchase Overview

In a move aligned with the general authority granted by shareholders on July 24, 2023, Santova has repurchased a significant portion of its ordinary shares. The company successfully bought back 4,105,303 shares, amounting to 3.1% of its issued share capital. This follows the approval to repurchase granted in July 2023, which still allows for further repurchases.

Details of the Repurchase

During the repurchase period, which spanned from October 26, 2023, to January 22, 2024, Santova executed the buyback at prices ranging from R 7.10 to R 7.70 per share, reflecting a total value of R 30,863,392.31.

Board’s Solvency and Liquidity Confirmation

Prior to initiating the repurchase, the board diligently applied the solvency and liquidity test mandated by Section 4 of the Companies Act, No. 71 of 2008. The board affirmed that, for the next 12 months following the completion of the repurchase:

• The company and its subsidiaries will be capable of servicing their debts in the ordinary course of business.
• The fair valuation of assets will equal or exceed the liabilities.
• Share capital and reserves will be adequate for ordinary business purposes.
• Working capital will be sufficient for ordinary business purposes.
• There have been no material changes to the financial position of the group.

Source of Funds and Financial Impact

The entire repurchase was funded from Santova’s available cash resources, resulting in a decrease of R 30,863,392.31 in the company’s cash balances. While this move impacts the cash position, it provides Santova with a more efficient capital structure and potential benefits for shareholders.