Published 10 April 2008
Dairy Equity Ltd shareholders voted today to approve the immediate return of capital via a repurchase & cancellation of shares. This requires High Court approval, expected in a few days.Subject to court approval, the approvals today will result in:
The return of 25c/share payable on 28 April and a simultaneous halving of the number of shares on issue on 24 AprilA further return of capital, expected to be 6.7c/share and made in mid-August, resulting from the sale of about 25% of its Fonterra fair value shares to farmer counter-parties at prices at or better than the current $6.79/share book value.
In addition, the board announced an interim fully imputed dividend of 1.5c/share on the number of shares on issue after the 50% capital reduction, to be paid at the same time as the capital return.Chairman Peter Jensen said after those transactions Dairy Equity would have about $16.5 million of fair value shares at market value (or 49c/share) on the reduced number of shares on issue.
12 December 2007: Dairy Equities shareholders vote to realise assets
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Attribution: Company statement, story written by Bob Dey for this website.