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Zintel to return 20 cents a share after windfall sale of Australian unit

Friday 16th March 2012

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Zintel Group, whose shares soared last month when the business phone company was offered more for its Australian unit than the company’s entire market value, said it will return 20 cents a share to investors.

The Auckland-based company will make a capital repayment of 9.75 cents a share and pay a special dividend of 10.15 cents, fully imputed, it said in a statement today. Zintel is still getting advice on the details of the repayment.

Last month, the company closed the sale of its Australian toll-free calling business for $15.3 million to Delaware-based j2 Global.

Zintel stock last traded at 40 cents, having jumped from 22 cents before last month’s announcement. The company has cash reserves and doesn’t need additional funds. After making the return to shareholders it will have about $8 million cash in the bank.

Excluding the Australian business that was sold, Zintel has annual sales in New Zealand of about $40 million.

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