Distribution to Shareholders (2185I)
June 10 2011 - 1:00AM
UK Regulatory
TIDMESG
RNS Number : 2185I
eServGlobal Limited
10 June 2011
ESERVGLOBAL LIMITED ("eServGlobal" or "Company")
DISTRIBUTION TO SHAREHOLDERS
10 June 2011
Further to the announcement made by eServGlobal Limited (ASX:
ESV & LSE: ESG) on 25 November 2010 regarding the proposed
distribution to shareholders (as voted upon by shareholders at the
Company's last AGM), the Company has undergone an extensive process
with the Australian Taxation Office (ATO) regarding the
distribution. Subject to the matters set out below, and as a result
of the enhanced opportunities on Homesend and PayMobile, the amount
of the distribution will be amended to A$0.29 per share rather than
A$0.33 per share.
During this review period, the Australian dollar has
strengthened considerably. As such, for UK investors who hold
shares by way of depositary interests and who now make up more than
46% of the company's register, the total distribution is currently
valued at GBP0.19 per share, a small reduction from the GBP0.205
per share value as at the 25 October 2010 announcement.
The distribution does not impact the A$24M from the sale of the
USP business remaining in escrow.
The payment is to be made partly as capital and partly as a
dividend:-
-- 16.85 cents per share by way of a return of capital
-- 12.15 cents per share by way of a dividend:
o 8.30 cents per share will be franked, with an attached
franking credit of 3.55 cents per share
o 3.85 cents per share will be unfranked.
The split in the payment to shareholders between capital return
and dividend results solely from the view that the ATO has formed
in relation to the taxation treatment of the payment.
It is important to note that the payment of the proposed
distribution is subject to:
-- a further shareholders' meeting approving the revised form of
distribution; and
-- a Class Ruling from the ATO confirming this treatment,
expected by early July.
The distribution should not be subject to Australian withholding
tax for non-Australian shareholders, as the unfranked portion of
the dividend will be paid from "conduit foreign income". This
change in structure should therefore make no difference to the
withholding tax liability of non-Australian shareholders who now
make up 71% of the Company's register.
Australian shareholders subject to capital gains tax on the
ultimate sale of their shares should have a cost base reduction of
A$0.1685 per share.
It is anticipated that the ATO will issue a Class Ruling by
early July, outlining their view on the tax treatment of the
arrangements.
The Company expects to call a shareholders' meeting after the
Company receives the Class Ruling and if approved, proposes to pay
this distribution in mid-August 2011. The Company will provide more
detail regarding the date of the shareholders' meeting, the record
date and the date for payment once the Class Ruling is
received.
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eServGlobal specializes in Mobile Money solutions and
Value-Added Services (VAS), to help Telco Service Providers
increase their revenue and gain and maintain customer
ownership.
eServGlobal invests heavily in product development, using
carrier-grade, next-generation technology and aligning with the
requirements of more than 60 customers in over 45 countries. For 24
years, mobile, fixed, Internet and multiplay telco providers have
used our capabilities to lead and innovate in their local markets,
leveraging their core assets and their trusted agent and subscriber
relationships.
With 13 offices globally, eServGlobal provides full "end-to-end"
and "any account to any account" Mobile Financial Services and
International Money Transfers.
Our Value Added Services in promotions, loyalty, messaging, and
multiplay are focused around the transaction and enable service
providers to engage with the subscriber in a personalized and
dynamic manner.
To reduce time-to market and manage exposure to CAPEX, we now
offer multiple licensing alternatives, including SaaS-based
flexible, revenue-share pricing.
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 T: +61 7 3302 0194
Tom Rowe info@eservglobal.com
Company Secretary
Cenkos Securities plc www.cenkos.com
Ivonne Cantu/Stephen Keys T: +44 (0) 20 7397 8980
(Nomad)
Alex Aylen/Julian Morse icantu@cenkos.com
(Sales)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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