By Phil Boeyen, ShareChat Business News Editor
Thursday 21st September 2000
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The company says the proposal is the equivalent payment of 20 cents for each existing share.
UIL says its asset base has improved from $40.4 million at the end of last year to a current valuation of $47.8 as a result of sound investment returns and a policy of maintaining unhedged offshore currency exposures.
It says despite this, the company's share price has continued to trade at a significant discount to the underlying asset backing, and the best course to provide value to shareholders is to return capital to them.
If the share cancellation is approved the NTA per share on the reduced issued capital will be around 48.5
cents per share.
Utilico's board has also asked its manager to advise on options for the future direction of the company, including liquidation. A report is expected at the start of next year.
If a new direction is recommended to shareholders the board says those shareholders who don't wish to participate will have the opportunity to exit their shareholding at close to net tangible assets per share at that time.
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