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196
Telkom Annual Report 2009
Notes to the consolidated annual financial statements (continued)
for the three years ended March 31, 2009
22. SHARE CAPITAL
Authorised and issued share capital is made up as follows:
2007 2008 2009
Rm Rm Rm
Authorised 10,000 10,000 10,000
999,999,998 ordinary shares of R10 each 10,000 10,000 10,000
1 class A ordinary share of R10 – – –
1 class B ordinary share of R10 – – –
Issued and fully paid 5,329 5,208 5,208
520,783,898 (2008: 520,784,184; 2007: 532,855,528)
ordinary shares of R10 each 5,329 5,208 5,208
1 (2008: 1; 2007: 1) class A ordinary share of R10 – – –
1 (2008: 1; 2007: 1) class B ordinary share of R10 – – –
The following table illustrates the movement within the number of shares issued:
Number of Number of Number of
shares shares shares
Shares in issue at beginning of year 544,944,901 532,855,530 520,784,186
Shares bought back and cancelled (12,089,371) (12,071,344) (286)
Shares in issue at end of year 532,855,530 520,784,186 520,783,900
Full details of the voting rights of ordinary, class A and class B shares are documented in the articles of association of Telkom.
Share buy-back
During the financial year Telkom bought back 286 ordinary shares at a total consideration of R30,425. The shares were bought back and
cancelled in order to allow Telkom shareholders to participate in the proposed unbundling of Vodacom Group on a one to one basis. This
reduced share capital by R2,860 and retained earnings by R27,565.
During the financial year ended March 31, 2008, Telkom bought back 12,071,344 ordinary shares at a total consideration of
R1,647 million. This reduced share capital by R121 million and retained earnings by R1,526 million.
During the financial year ended March 31, 2007, Telkom bought back 12,089,371 ordinary shares at a total consideration of
R1,596 million. This reduced share capital by R120 million, share premium by R1,342 million and retained earnings by R134 million.
Capital management
Refer to note 13 for detailed capital management disclosure.