Dairy Equity announcement - 25 July 2008
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Dairy Equity Limited (DEL) | 3:21 pm, Friday 25 July 2008
Media Release 25 July 2008
Dairy Equity on Track to Return Capital in August
NZSX listed Dairy Equity Limited (DEL) today advised that it has received
settlement proceeds from the sale or redemption of 28% of the Fonterra Fair
Value shares that it beneficially owned, and that it will be returning $6.1
million of capital (the equivalent of approximately 13 cents/share currently
on issue) to shareholders in mid August as planned.
Dairy Equity Chairman, Peter Jensen, said that this return of capital, which
was approved by the High Court last March, had been signaled to shareholders
previously but was always cash dependant.
"Our ability to make the return of capital was always subject to Dairy Equity
receiving payment for the shares it sold back to its farmer counterparties
earlier this year. The last of these payments, which were due mid July, have
now been received and we are in a position to make the maximum return of
capital approved by the High Court in March."
Peter Jensen also said that DEL had so far sold or redeemed its beneficial
interest in just under 0.9 million Fair value Shares since it received the
High Court order in March. DEL stills beneficially owns just over 2.25
million Fair Value Shares and it is about to embark on a programme to sell
these. It is starting this sales process by offering its farmer
counterparties a final opportunity to repurchase their Fair Value Shares and
thereby cancel their SWAP Agreement with DEL.
'We are offering shares back to our farmer counterparties at the current Fair
Value Share price of $5.57/share which should be attractive to them.
However, to the extent that farmer counterparties don't take up this offer,
DEL will then offer to sell its SWAP Agreements to other interested parties".
Ends.....
For Further Information
Peter Jensen
Chairman, Dairy Equity Limited (0274) 972 551