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2015 /

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

2.99 million shares were successfully tendered into the Buyback.  The Buyback Price for shares bought back by IMB was $5.35, representing a 0% discount to the Deemed Market Value. The total consideration for the shares bought back was $16 million.

 

The outcomes of this Buyback are summarised below:

 

Value of Shares bought back

$16 million

Number of Shares bought back

2.99 million

Percentage of Shares on issue bought back

8.6%

Percentage of votes attaching to Shares bought back

2.9%

Deemed Market Value per Share

$5.35

Buyback Discount

0%

Buyback Price per Share

$5.35

Capital Component per Share

$1.18

Fully franked dividend component per Share

$4.17

Scale Back (applying only to shares tendered at 0% discount)

11.25%

 

The total number of shares bought back under the Buyback program to date is 8 million, representing 20% 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.

 

Scale Back

As a result of the strong demand for the Buyback, all Shares tendered will be bought back from shareholders who tendered their Shares at a discount of 2% or more and/or as a Final Price Tender, and a scale back will apply to tenders submitted at a discount of 0%.

 

Shareholders whose tender is subject to scale back will have a Priority Parcel of 300 Shares bought back before a scale back of 11.25% is applied. As a result of the 11.25% scale back, successful shareholders who tendered their shares at 0% discount will have 88.75% of their Shares tendered in excess of the Priority Parcel bought back.

 

In addition, shareholders who tendered all of their Shares at a discount of 0% and who would be left with less than 100 Shares after the acquisition of the Priority Parcel and application of the scale back, will have their Shares bought back in full.

 

Tax Considerations

The final Class Ruling to be issued by the ATO is expected to confirm that $4.17 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 $1.18. 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 31 May 2015.

 

Payments

The Buyback proceeds are expected to be dispatched to successful participants by direct credit to their nominated account on Friday 27 March 2015.

 

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).

 



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 28 January 2015 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 $5.08 and the S&P/ASX 200 index has increased by 5.4% from 5,544.3 on 28 January 2015 to 5,842.3 on 18 March 2015.

Rounded to 2 decimal places

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