TWR
31/07/2014 09:07
GENERAL
REL: 0907 HRS Tower Limited
GENERAL: TWR: Off market share buy-back - ATO Class Ruling Published
31 July 2014
Market Information
NZX Limited
Level 2, NZX Centre
11 Cable Street
Wellington
New Zealand
Company Announcements Office
Australian Securities Exchange Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
Australia
Off market share buy-back - Australian Taxation Office Class Ruling Published
(Auckland - NZ) TOWER Limited confirms that it has now received a class
ruling from the Australian Taxation Office regarding the pro-rata off market
voluntary buy-back (capital-only) of TOWER shares completed on 31 January
2014 (Buy-back).
The class ruling applies to Australian resident Participating TOWER
Shareholders that held their TOWER shares on capital account and satisfy
certain other conditions. In summary, for relevant Australian resident
shareholders who held TOWER shares at the time of the Buy-back on 31 January
2014, the class ruling confirms that the purchase price is not a dividend for
Australian tax purposes and the disposal of the shares by Australian
Participating TOWER Shareholders was a Capital Gains Tax (CGT) event.
Background to the Buyback
On 26 November 2013, TOWER Limited announced that a pro-rata off market
voluntary buy-back (capital-only) of TOWER shares would be conducted. The
offer to participate in the Buy-back was made to all TOWER shareholders and
only those who elected to participate (Participating TOWER Shareholders) had
their TOWER shares bought back.
On 31 January 2014, TOWER paid Participating TOWER Shareholders NZ$1.81 for
each purchased share (Australian Participating TOWER Shareholders were paid
the Australian dollar equivalent).
The sale consideration of A$1.63805 per share (equivalent to NZ$1.81 at the
conversion rate applied on the Record Date) will be regarded as the capital
proceeds for CGT purposes. An Australian Participating TOWER Shareholder
will have made a capital gain (or capital loss) if the amounts received from
TOWER for the shares were more than (or less than) the cost (or reduced cost
base) of those shares.
The class ruling from the Australian Taxation Office regarding the tax
treatment of the Buy-back for Australian resident shareholders has now been
published and can be viewed on the web site of the Australian Taxation
Office, http://law.ato.gov.au/atolaw/index.htm.
If Australian shareholders have any queries in relation to the class ruling,
they are advised to obtain specific taxation advice on the treatment of the
Buy-back, taking into account their particular circumstances.
ENDS
Michael Boggs
Chief Financial Officer
TOWER Limited
ARBN 088 481 234 Incorporated in New Zealand
End CA:00253321 For:TWR Type:GENERAL Time:2014-07-31 09:07:29
