Forum Archive Index - April 2000

[Mike Nelson <bb2345@ihug.co.nz>]

CAPREC: CEM: PROPOSED RETURN OF CAPITAL
 
The Ceramco Board has advised that subject to the consent of the High Court
and Shareholder approval it would return $16.1m of surplus capital to
shareholders through a for share cancellation.
The funds for this return of capital will come from the proceeds of the sale
of New Zealand China Clays.
In consideration for the application for the funds from the sale, the
directors have determined that the $16.1m is in excess of the company_s
current and anticipated needs. The directors have resolved that the return of
capital should be effected by way of a court-approved arrangement under Part
XV of the Companies Act 1993
Based on the closing price on Monday 17/04/2000 of $1.59, 1 in every 4 shares
in the company held by each shareholder will; be cancelled and each
shareholder will receive $1.59 for each share cancelled.
Currently there are 40,443,809 shares on issue and this pro rata share
cancellation will reduce the number of shares on issue to 30,332,856.
The share cancellation and return of capital will occur in late July
conditional upon settlement of the sale of NZ China Clays.
The amounts to be distributed to shareholders in accordance with the
arrangement will be treated as a return of capital, not as a dividend for NZ
Income tax purposes. Accordingly, Imputation credits will not be attached to
such amounts.
The directors note that this is the first step in the rationalisation of the
Ceramco Group subsequent to the proposed sale of NZ China Clays.
There will be costs involved in the rationalisation and funds may also be
required for the future development of Bendon. However it is the intention of
Directors to return additional funds to shareholders when possible.
The Notice of Meeting and other documentation will be sent to shareholders in
mid May.
End CA:00055464 For:CEM    Type:CAPREC     Time:2000-04-18:09:21:36 Encrypt:Y

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