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

3.49 million shares were successfully tendered into the Buyback.  The Buyback Price for shares bought back by IMB was $4.73, representing a 14% discount to the Deemed Market Value of $5.50. The total consideration for the shares bought back was $16.5 million.

Shares tendered at discounts less than or equal to 12% were not bought back, representing 674,518 shares, or 16.2% of all shares tendered. The Board determined that in all of the circumstances it was not in the best interests of IMB to buyback these shares.

The outcomes of the Buyback are summarised below:

   

Value of Shares bought back

$16.5 million

Number of Shares bought back

3.49 million

Percentage of Shares on issue bought back

10.9%

Percentage of votes attaching to Shares bought back

4.9%

Deemed Market Value per Share1

$5.50

Buyback Discount

14%

Buyback Price per Share

$4.73

Capital Component per Share

$1.18

Additional Capital component

$0.77

Fully franked dividend component per Share

$3.55

 

Tax Considerations

The final Class Ruling to be issued by the ATO is expected to confirm that $3.55 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 $1.95, being the Capital Component of $1.18 plus the Additional Capital Component of $0.77, being the difference between the Buyback Price of $4.73 and the Deemed Market Value of $5.50 (i.e. the Buyback Discount). 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 2017.

Payments

The Buyback proceeds are expected to be dispatched to successful participants by direct credit to their nominated account by Friday 16 December 2016.

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).

 

15 December 2016

 

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 20 October 2016 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 $5.46 and the S&P/ASX 200 index increased by 0.7% from 5,438.5 on 20 October 2016 to 5,478.1 on 7 December 2016.

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