Imperial Bank in R300 Million Share Buyback

By Eddyson Lugangwa Posted 21 June 2006 @ 11:31 pm EET     Print     Reprint     E-Mail     Comments

Johannesburg (IBTimes.com) - Imperial Bank is to list 3 million preference shares on the JSE tomorrow to raise R300m to buy back ordinary shares and enhance return on capital.

In a prelisting statement, the bank said the preference shares had been placed privately. The bank, owned jointly by transport group Imperial Holdings and Nedbank, said growth in the past two years had required additional capital.

"Nedbank provides the vast majority of the funding and risk management support, while Imperial Holdings directs business to Imperial Bank through its extensive motor franchises," the bank said.

"Further capital will be required during 2006 to support the expected growth." In its latest annual report, Imperial Bank said it was well positioned to continue benefiting from favourable market conditions. New-vehicle sales were set for another record-breaking year.

Imperial Bank said that after receiving payment for the preference shares, it would be able to pay its debts as they became due, and its consolidated assets would exceed its consolidated liabilities.

Meanwhile, Imperial Holdings, SA's biggest transport company, said yesterday that its headline earnings a share for the year to June 25 would be 25%-30% higher than for the previous year.