Notes to the annual financial statements

Pick n Pay Stores Limited

		GROUP
		2011 Rm	2010 Rm
19.	Share capital and share premium
19.1	Share capital
	Authorised
	800 000 000 ordinary shares of 1.25 cents each	10.0	10.0
	Issued
	The movement in issued share capital during the year is as follows:
	At 1 March: 480 397 321 (2010: 506 133 882) ordinary shares of 1.25 cents each	6.0	6.3
	25 736 561 ordinary shares repurchased and cancelled (note 19.3)	—	(0.3)
	At 28 February: 480 397 321 ordinary shares of 1.25 cents each	6.0	6.0

		Number of shares 000’s	Number of shares 000’s
	The number of shares in issue at 28 February is made up as follows:
	Treasury shares held in the share trust (note 20.2)	3 411.6	6 780.5
	Shares held outside the Group	476 985.7	473 616.8
	Total shares in issue at 28 February	480 397.3	480 397.3
	Under a general authority 24 million of the unissued shares remain under the control of the directors until the next annual general meeting.
	In addition to the general authority above, 63.9 million unissued shares (13.3% of issued shares) remain under the control of the directors to implement the terms and provisions of the Pick n Pay 1997 Share Option Scheme.
	The holders of ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at meetings of the Company.
	Refer to note 4.1 for details of share options granted by the Group. For directors’ interests in shares, refer to note 3.3.
		Rm	Rm
19.2	Share premium
	The movement in the share premium during the year is as follows:
	At 1 March	—	121.7
	Share cancellation (note 19.3	—	(121.7)
	At 28 February	—	—
19.3	Share repurchase and cancellation
	On 25 February 2010, the Company repurchased 25 736 561 ordinary shares from a subsidiary company for a total consideration of R1 037.1 million. In accordance with section 85 of the Companies Act these shares were cancelled. The cancellation was accounted for by a reduction in the nominal value of shares in issue (R0.3 million), utilisation of the share premium account (R121.7 million), and a reduction of the Company’s total equity. As these shares were treasury shares already held by the Group, the only effect the transaction had on Group equity was a Securities Transfer Tax charge of R2.7 million.