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ATO Class Ruling

The ATO’s Class Ruling CR 2018/2 Income tax: IMB Limited - Off-market share buy-back which sets out the tax treatment of IMB’s 2017 Off-Market Share Buyback is available here. IMB encourages shareholders to seek taxation advice in preparing their tax returns incorporating the 2017 Off-Market Share Buyback.

IMB Ltd Completes $11.8 million Off-Market Share Buyback

IMB Ltd (“IMB”) today announces the completion of its off-market share buyback (“Buyback”). The Buyback was the fifth in a series of buybacks that IMB expects to undertake over the medium term.

2.41 million shares were successfully tendered into the Buyback.  The Buyback Price for shares bought back by IMB was $4.91, representing a 0% discount to the Deemed Market Value. The total consideration for the shares bought back was $11.8 million.

The outcomes of the Buyback are summarised below:

   

Value of Shares bought back

$11.8 million

Number of Shares bought back

2.41 million

Percentage of Shares on issue bought back

8.5%

Percentage of votes attaching to Shares bought back

4.7%

Deemed Market Value per Share1

$4.91

Buyback Discount

0%

Buyback Price per Share

$4.91

Capital Component per Share

$1.17

Additional Capital component

Nil

Fully franked dividend component per Share

$3.74

The total number of shares bought back under the Buyback program to date is 14 million, representing 35% of the issued share capital at the commencement of the Buyback program. The Board is pleased with the success of the Buyback program and remains committed to undertaking further Buybacks over the medium term.

Tax Considerations

The final Class Ruling to be issued by the ATO is expected to confirm that $3.74 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 $1.17. Please refer to section 3 of the Buyback Booklet for information on the taxation treatment of the Buyback. The Class Ruling is expected to be published by mid-February 2018.

Payments

The Buyback proceeds are expected to be dispatched to successful participants by direct credit to their nominated account by Wednesday 20 December 2017.

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).

 

19 December 2017


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 27 October 2017 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 $4.85 and the S&P/ASX 200 index increased by 1.3% from 5,919.9 on 27 October 2017 to 5,998.3 on 11 December 2017.

IMB Announces Off Market Share Buyback

Please click here for more details.

Off Market Buyback Booklet

Please click here for a copy of the Off Market Buyback Booklet

IMB Ltd Off-Market Share Buyback 2017 Deemed Market Value    

IMB Ltd advises that the Deemed Market Value for the Off-Market Buyback of IMB Shares is $4.91. The final Buyback Price will be determined by applying the Buyback Discount of between 0% and 14% (at increments of 2%) to the Deemed Market Value. On this basis, the tender discounts are equivalent to the following tender prices (rounded to the nearest cent):

Tender Discount

Tender Price

14%

$4.22

12%

$4.32

10%

$4.42

8%

$4.52

6%

$4.62

4%

$4.71

2%

$4.81

0%

$4.91


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 27 October 2017 adjusted for the movement in the S&P/ASX 200 index from the date of the announcement of the Buyback to the Closing Date, being today. The VWAP was $4.85 and the S&P/ASX 200 index has increased by 1.3% from 5,919.9 on 27 October 2017 to 5,998.3 on 11 December 2017.

The results of the Buyback, including the actual Buyback Price and any scale back are expected to be announced on Tuesday 19 December 2017.

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 5:00pm Monday to Friday (Sydney time).

IMB Off Market Buyback Tax Calculator

The IMB Off-Market Share Buyback provides an opportunity for IMB Shareholders to sell their Shares to IMB.

The potential Australian tax consequences of Eligible Participants that sell Shares under the Buyback will depend on their individual circumstances.

The Indicative Tax Calculator is intended to provide examples of the likely after tax proceeds of selling Shares under the Buyback for Australian resident Eligible Participants.

The Indicative Tax Calculator is based on the terms of the Buyback (as outlined in the IMB Off-Market Buyback Booklet) and current tax legislation and administrative practices as at 27 October 2017.

It is important that you read the IMB Off-Market Buyback Booklet carefully. The description of the tax consequence of participating in the Buyback is set out in Section 3 of the Booklet.

The Indicative Tax Calculator is not intended to:

  • be a substitute for  the IMB Off-Market Buyback Booklet
  • be a substitute for legal, financial, taxation or other professional advice; or
  • provide guidance or advice about whether IMB Shareholders should participate in the Buyback.

It should not be relied upon for these purposes.

IMB makes no recommendation and is not giving any advice as to whether Eligible Participants should participate in the Buyback.

By clicking the button below you acknowledge that:

  • the calculations and assumptions underlying the calculations may not reflect your particular circumstances
  • you will not rely on the calculations in deciding whether to participate in the Buyback.

Click here to access the IMB Off-Market Buyback Indicative Tax Calculator

Shareholders are encouraged to seek legal, financial, taxation or other professional advice before deciding whether to participate in the Buyback.

Shareholders may contact IMB Financial Planning for an initial complimentary consultation as to how the buyback operates.

S&P/ASX 200 Movement

Movement in the S&P/ASX 200 

The following table shows the movement in the S&P/ASX 200 Index.

   

Opening level

5,919.9

Previous Day’s close

5,994.4

Movement – value

74.5

Movement - %

1.3%

Shareholders should note that the closing S&P/ASX 200 Index may be higher or lower than the opening S&P/ASX 200 Index and that movements in the Index throughout the Buyback period should not be considered an indication of the final position.

Further details on the S&P/ASX 200 Index can be found at asx.com.au and searching XJO.

Tender Withdrawal / Amendment Form

Please click here for a copy of the Tender Withdrawal / Amendment Form.

 

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