john anderson, chairman interview, page-47

Alley,

Thanks for your reply.

However "Special dividends" and "return of capital" are one of the same.

For your information, there are some precedents and examples below:


A) A special dividend is a dividend that is stated to be a special dividend when it is declared. The main reason for declaring a dividend special is to make it clear that it is a one-off. This is a signal to investors that it is not part of a sustainable increase in dividends.

Usually, when a company raises its dividend, the market takes this as signalling that the company will keep paying dividends at the new higher level. It may also signal a change in the company's policy regarding dividends.

Labelling a dividend "special" makes it clear that the company does not wish to signal this.

It is quite usual for a company to pay a special dividend and increase its normal dividend as well. In this case the increase to the normal dividend is a signal and can be taken as indicating the company's current dividend policy. The (usually much bigger) increase due to the special dividend is not.

For this reason the special dividend should not be included in yield calculations and has only a a limited effect on valuation.

Special dividends are most often used to return capital to shareholders.



B) What Does Special Dividend Mean?
A non-recurring distribution of company assets, usually in the form of cash, to shareholders. A special dividend is larger compared to normal dividends paid out by the company. Also referred to as an "extra dividend".



C) Special Dividend Announcement
Thu, 4 Aug 2011 15:01:00 +1000 1 day, 9 hours ago

Measuring the other side of immunity Cellestis Limited Level 1, Office Tower 2 PO Box 169 Chadstone Centre VIC 3148 Australia 4 August 2011 Mr James Gerraty ASX Limited Level 45, Rialto Towers 525 Collins Street MELBOURNE VIC 3000 Dear Sir, Special Dividend Announcement The Cellestis Limited Board has declared that a fully franked special dividend of $0.06 per Cellestis share (Special Dividend) is to be paid, subject to the scheme of arrangement between Cellestis and Cellestis shareholders that was approved by Cellestis shareholders on 3 August 2011 (Scheme) being implemented. Cellestis shareholders that are on the Cellestis share register at 5.00pm on Thursday, 18 August 2011 will be entitled to receive the Special Dividend if the Scheme is implemented. Cellestis shareholders that are on the Cellestis share register as at 5.00pm on Monday, 22 August 2011 (excluding any Excluded Shareholders) will receive Scheme Consideration of $3.74 per Cellestis share from QIAGEN Australia Holding Pty Ltd if the Scheme is implemented.

The Scheme Consideration of $3.74 per Cellestis share and the Special Dividend of $0.06 per Cellestis Share together represent Total Cash Payments of $3.80 per Cellestis share. If the Scheme is implemented, it is expected that the Special Dividend and Scheme Consideration will be paid to Cellestis shareholders by no later than 5:00pm on Thursday, 1 September 2011. For further information, please contact: Brian Manuel Chief Financial Officer and Company Secretary Cellestis Limited [email protected] +61 3 8527 3500



D)Crane seeks tax ruling on special dividend:

Plumbing supplies maker Crane Group Ltd says it can't guarantee a favourable tax ruling on a special dividend to be paid as part of a takeover by Fletcher Building Ltd.

Earlier this week, Crane Group entered into implementation of a takeover after New Zealand's Fletcher Building raised its offer to about $800 million.

Included in the deal is a proposed fully franked 50 cents per share special dividend to be paid to Crane shareholders.

Crane said on Thursday it was seeking a class ruling from the Australian Taxation Office (ATO) on the consequences of the dividend for its shareholders, including confirmation shareholders can obtain the benefit of the attached franking credits.

"While Crane Group believes that a favourable ruling will apply, there is no certainty that this will be the case," the company said in a statement.

Fletcher Building Australia will not declare its takeover bid unconditional before February 18, meaning Crane shareholders on the register as at February 16 who accept the offer can receive the special dividend.

Crane said its shareholders would also be entitled to the 22 cent interim dividend for the six months to December 31.



E) NEWS

Cellestis to pay 6c special dividendPublished 12:25 PM, 5 Aug 2011

Source: News Bites


Cellestis Ltd announced a fully franked special dividend of 6c per Cellestis share is to be paid subject to the scheme of arrangement (takeover by Dutch pharma Qiagen) between Cellestis and its shareholders that was approved on August 3 being implemented.

Shareholders registered at 5pm on August 18 will be entitled to receive the special dividend.

The scheme consideration of $3.74 per Cellestis share and the special dividend of 6c per share together represent total cash payments of $3.80 per Cellestis share.



Alley,

The last one here from Cellestis has just been announced and approved today the 5th of August current, and it is relevant to a similar situation than ours with a SOA in place.

As I said previously above, special dividends and return of capital are much of the same, and they can also be paid out in takeovers and SOA situations.

As to whether or not our Board will give some thoughts about it's retail shareholders, remains to be seen. But, if they want to, regulations are in place for them to do so.

I hope that this will help.

Cheers.