Woolworths issues shares for cash

The specific issue is regarded as a specific repurchase of shares by WPL for the purposes of the JSE Requirements.

The capital raised from the specific issue will be applied for the purpose of a proposed cash payment to ordinary shareholders to be made by Woolworths in lieu of the interim dividend on the ordinary shares for the six months ended December 2009, the company said.

The proposed cash distribution will be consistent with interim dividend distributions made in the past to ordinary shareholders under the authority granted by shareholders at the annual general meeting of Woolworths held on Thursday, November 19 2009.

The ordinary shares to be issued in terms of the specific issue will rank pari passu in all respects with the existing issued ordinary share capital of the company.

Woolworths will undertake the specific issue from its authorised but unissued share capital, prior to the next annual general meeting of Woolworths to be held in November 2010.

The ordinary shares to be allotted and issued to WPL in terms of the specific issue will be accounted for as treasury shares and application will be made to the JSE for the listing of these shares once they have been issued.

The specific issue will have no significant or material effect on Woolworths' earnings, headline earnings, net asset value or tangible net asset value and, accordingly any such effect has therefore not been disclosed.