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24 June 2019

IMB Ltd (“IMB”) today announced the completion of its sixth off-market share buyback (“Buyback”). The Buyback was oversubscribed with 2.22 million shares tendered at a total value of $11.4 million (calculated at the Deemed Market Value of $5.16 and prior to the application of any discount). As such, only those shares tendered as a Final Price tender or at a tender discount of 14% were bought back.

1.86 million shares were successfully tendered into the Buyback.  The Buyback Price for shares bought back by IMB was $4.44, representing a 14% discount to the Deemed Market Value. The total consideration for the shares bought back was $8.2 million.

Shares tendered at discounts less than or equal to 12%, representing 362,642 shares, or 16.3% of all shares tendered, were not bought back.

The outcomes of the Buyback are summarised below:

 

Value of Shares bought back

$8.2 million

Number of Shares bought back

1.86 million

Percentage of Shares on issue bought back

7.2%

Percentage of votes attaching to Shares bought back

4.0%

Deemed Market Value per Share1

$5.16

Buyback Discount

14%

Buyback Price per Share

$4.44

Capital Component per Share

$1.18

Additional Capital component

$0.72

Fully franked dividend component per Share

$3.26

The total number of shares bought back under the Buyback program to date is 16 million, representing 40% of the issued share capital at the commencement of the Buyback program.

Tax Considerations

The final Class Ruling to be issued by the ATO is expected to confirm that $3.26 of the Buyback Price will be treated as a fully franked dividend and that for Australian capital gains tax purposes, the Sale Consideration per share is $1.90, being the Capital Component of $1.18 plus the Additional Capital Component of $0.72, being the difference between the Buyback Price of $4.44 and the Deemed Market Value of $5.16 (i.e. the Buyback Discount). Please refer to section 3 of the Buyback Booklet for information on the taxation treatment of the Buyback.

Payments

The Buyback proceeds are expected to be dispatched to successful participants by direct credit to their nominated account by Tuesday 25 June 2019.

Further information

Further information about the Buyback can be found on IMB’s website at www.imb.com.au or in the Buyback Booklet which was mailed to shareholders. Shareholders may also call the IMB Buyback information line on 1300 585 271 from within Australia or 61 2 4298 0190 from outside Australia between 9:00am and 5:00 Monday to Friday (Sydney time).


1. The Deemed Market Value has been calculated as the volume weighted average price (“VWAP”) of IMB Shares traded on the IMB Market over the 10 days on which Shares traded prior to the announcement of the Buyback on 2 May 2019 adjusted for the movement in the S&P/ASX 200 index from the date of the announcement of the Buyback to the Closing Date. The VWAP was $5.01 and the S&P/ASX 200 index increased by 3.0% from 6,360.6 on 2 May 2019 to 6,554.0 on 14 June 2019.

Why choose IMB Bank?

Established in 1880, IMB has been helping people achieve their financial goals for 139 years. IMB offers a full range of banking solutions including home and personal lending, savings and transaction accounts, term deposits, business banking, financial planning and can arrange a wide range of insurance and travel products.

IMB has a growing branch network throughout the Illawarra, Sydney, NSW South Coast, the ACT and Melbourne. We have a lending specialist in every branch and a team of mobile lending specialists who will come to you. IMB members enjoy access to free automated phone and internet banking and a team of professionals who are just a phone call away at our locally based call centre.

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