Capital Management Review - Capital Return
25 Ottobre 2010 - 8:00AM
UK Regulatory
TIDMESG
RNS Number : 9232U
eServGlobal Limited
25 October 2010
CAPITAL MANAGEMENT REVIEW
25 October 2010
Background
The 2010 financial year was dominated by the company undertaking a full
operational demerger of the USP business and then subsequently entering into an
agreement in May 2010 to sell that business to Oracle for AU$107 million. The
agreement provides that AU$23.6 million of the sale proceeds will be held in
escrow for between 12 and 24 months. The transaction was completed in early
August 2010. The company announced that subsequent to completion, the Board
would undertake a capital management review in order to consider the extent to
which the cash proceeds in relation to the transaction were excess to the
company's ongoing requirements.
Outcome of Review
That review has now been completed, with the Board forming the opinion that a
return of capital by way of capital reduction is in the best interests of the
company and shareholders. Accordingly, at the 2010 annual general meeting,
shareholders will be asked to consider, and if they think fit, approve a
resolution to reduce the capital of the company, which will involve a return of
capital to all shareholders. The implementation of the proposed capital
reduction is also conditional on the company obtaining a satisfactory class
ruling and private binding ruling from the Australian Taxation Office. If
satisfactory rulings are not obtained the proposed capital return will not
proceed and other capital initiatives will be considered further by the Board.
If these conditions are satisfied, all shareholders will receive a cash payment
of $0.33 per share held on the specified record date, with approximately AU$65
million being returned in aggregate to all shareholders.
Further details are contained in the 2010 Annual General Meeting Notice of
Meeting and Explanatory Memorandum which will be posted to shareholders and
placed on the company's website shortly.
ENDS
eServGlobal Limited is listed on the Australian Securities Exchange (ASX: ESV)
and the London Stock Exchange AIM market (LSE: ESG). More information can be
found at: www.eservglobal.com
+---------------------------------+---------------------------------+
| eServGlobal Limited | Tel: +61 7 3302 0194 |
+---------------------------------+---------------------------------+
| Jason Lilienstein | info@eservglobal.com |
+---------------------------------+---------------------------------+
| Company Secretary | |
+---------------------------------+---------------------------------+
| | |
+---------------------------------+---------------------------------+
| Altium (AIM) | |
+---------------------------------+---------------------------------+
| Nominated adviser, Paul Lines | Tel: +44(0)845 505 4343 |
+---------------------------------+---------------------------------+
Corporate Broking, Chloe Ponsonby
This information is provided by RNS
The company news service from the London Stock Exchange
END
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