Dividend re-investment plan and buyback not to proceed
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Telecom Corporation of New Zealand Limited (NS) (TEL) | 8:16 am, Friday 5 September 2008 | TEL | 2.380 |
 -0.050 |
(-2.06%) |
5 September, 2008
MEDIA RELEASE
Dividend re-investment plan and buyback not to proceed
Telecom New Zealand announced today that its dividend reinvestment plan, and
the associated on-market share buyback of its ordinary shares, will not
proceed this quarter in respect of the dividend payable on Friday, 12
September 2008.
Shareholders who have elected to participate in the dividend reinvestment
plan will receive a cash dividend at the same time as dividends are paid to
shareholders who do not participate in the dividend reinvestment plan,
ensuring that all shareholders are in an equitable position.
This decision is related to Telecom's announcement at its annual results on 8
August 2008 that it is evaluating the opportunity to accelerate the delivery
of national WCDMA broadband mobile coverage at 850mhz (W850). This is a
strategically important and material decision.
For this reason, Telecom considers it is not prudent to proceed with the
issue of shares under its dividend reinvestment plan for the upcoming
quarterly dividend, or undertake the associated on-market share buyback of
Telecom ordinary shares.
Telecom considers this approach to be in line with best practice corporate
governance.
Telecom will update the market of any material developments in connection
with any formal proposal on W850 at the time a decision is made.
ENDS
Contact:
Mark Watts
Head of external media
Telecom New Zealand
Telephone 0272 504 018
