Wilson Bayly Holmes – Ovcon Limited (WBHO) has made a significant announcement regarding the repurchase of its ordinary shares. The company has repurchased a total of 3,383,758 ordinary shares from Akani Investment Holdings (Proprietary) Limited at a price of one cent per share.
The decision to repurchase the shares stems from a special resolution passed by WBHO shareholders during a general meeting held on October 11, 2006. This resolution was connected to the introduction of an empowerment scheme. The repurchase was executed in accordance with the applicable repurchase formula detailed in the subscription and repurchase agreements.
Effective June 19, 2023, the repurchased shares have been acquired by WBHO. The total value of the repurchased shares amounts to R33,837.58. Following the completion of the repurchase, WBHO’s issued share capital now stands at 56,506,756 ordinary shares, with 4,151,788 shares held as treasury shares.
The directors of WBHO have conducted a thorough assessment of the share repurchase and expressed their opinion that the company and its subsidiaries will be able to meet their financial obligations for the next 12 months. They have confirmed that WBHO’s assets exceed its liabilities, as measured in accordance with the accounting policies used in the latest audited consolidated annual financial statements for the year ended June 30, 2022. Furthermore, the directors believe that the ordinary share capital, reserves, and working capital of WBHO and its subsidiaries will remain adequate for the next 12 months.
To fund the specific repurchase, WBHO will utilize its existing cash facilities. As a result of the repurchase and delisting of the shares, there will be a decrease in equity.
In light of these developments, WBHO intends to apply to the JSE for the delisting of the repurchased 3,383,758 shares, which represent 5.65% of the company’s current issued share capital.
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