Telstra completes $1 bln off-market share buybackSource: AAP...

Telstra completes $1 bln off-market share buyback
Source: AAP
Published: Monday November 24 2003, 9:15 AM

Telstra Corp Ltd today announced it has successfully completed its $1 billion off-market share buyback.

A total 238,230,580 shares will be bought back at $4.20 a share, representing 3.71 per cent of Telstra's non-Commonwealth of Australia-owned issued shares.


--------------------------------------------------------------------------------

Telstra chief financial officer John Stanhopesaid strong support for the buyback had led to the buyback price being struck at the bottom of the tender range.

The buy-back was more than two and a half times oversubscribed at $4.20, Telstra said, requiring the larger tenders to be scaled back by about 65.6 per cent.

"The $4.20 buy-back price will comprise a fully franked dividend of $2.70 and a capital component of $1.50 per share bought back," Telstra said in a statement.
The first 400 shares successfully tendered by each registered shareholder will be bought back in full before the scale back applies, as described in the Buy-Back documents, Telstra said.

The scale back will not apply where this would leave shareholders who tendered all their shares with a remaining holding of 400 shares or less.

Shareholders with 1009 or less Telstra shares who tendered all their shares into the Buy-Back at $4.20 or as Final Price Tenders will have all their shares bought back in full.

Mr Stanhope said shareholders whose shares have been purchased under the Buy-Back may receive certain tax advantages, depending on their particular circumstances.

"For the more than ninety five per cent of Telstra shareholders who decided to retain all their shares, the buyback price represents a very efficient price for Telstra to buy back its shares and thereby maximise earnings per share and longterm value enhancement for the Company and its shareholders," he said.

"The buyback was part of Telstra's ongoing capital management program and reflected Telstra's very sound financial settings.

"The buyback does not impact the company's ability to maintain foreseeable capital investment, undertake appropriate acquisitions or fund other growth initiatives.

"Telstra will continue to consider various capital management initiatives in the future."