By Phil Boeyen, ShareChat Business News Editor
Wednesday 9th August 2000
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Strathmore announced the buyback a matter of weeks ago and issued a don't sell notice at the time.
Now that a decision has been made to proceed with the much-vaunted CommSoft ASX listing, SMR says it is appropriate to "fully inform Strathmore shareholders regarding the buy back and other entitlements".
SMR shareholders will also get a preferential entitlement for CommSoft shares, receiving a minimum entitlement to subscribe for 500 CommSoft shares at a rate of one share for every 75 Strathmore shares they hold.
New Zealand Funds Management has offered to pay A$0.11 a share for entitlement rights should a shareholder not wish to exercise their preferential purchasing rights.
Strathmore Executive Chairman Phil Norman said the preferential entitlement had been arranged with CommSoft and was a tangible way of rewarding Strathmore shareholders for their support.
"Strathmore is delighted the CommSoft listing will occur soon and is particularly pleased that a preferential offer will be made to Strathmore shareholders to subscribe for shares.
"The terms of the offer, taken alongside the offer from New Zealand Funds Management, mean shareholders will receive at least $A0.11 per share for their entitlement."
Shareholders on the Strathmore register on August 11 will be able to participate in the entitlement to CommSoft shares.
Strathmore directors also announced that shareholders participating in the buyback will receive one $A1.10 listed CommSoft share for every 4.25 Strathmore ordinary shares they sell. Shareholders on the Strathmore register on August 18 will be eligible to participate in the buy back.
CommSoft directors, cornerstone shareholders including Cullen Investments and Advantage Group, and institutional investor New Zealand Funds Management have agreed to accept the buyback.
The company says to ensure that listed shares in CommSoft are transferred, the offer to buy back shares is conditional on the completion of the CommSoft IPO on or before November 30.
Strathmore says it will be selling down A$2 million of its investment into the CommSoft IPO. This will reduce its current 38% stake to 14%.
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