Gippsland Limited has today posted the attached letter to shareholders listed on its Australian share register holding less than 4,166 shares. This letter has been lodged with Australian Stock Exchange.
ASX Listing Rules and the Company's Constitution empowers directors of Gippsland Limited ("Gippsland" or "the Company") to sell the security holdings of any member who holds less than a marketable parcel of securities ("Small Shareholder") provided the Small Shareholder has:
(a) been issued with an Elimination Notice and Notice of Retention; and
(b) not returned their Notice of Retention by 5.00 pm on 19 August 2005 ("Retention Date")
Gippsland would like to sell on your behalf, your unmarketable parcel of shares in the Company.
As at 6 July 2005 ("Notice Date") a marketable parcel as defined by the Australian Stock Exchange Listing Rules was at least 4,166 shares (representing $500 in value based upon 12 cents per share).
Your shareholding (which is set out on the Notice of Retention on the reverse side of this notice) was less than a marketable parcel at the Notice Date.
To assist in reducing the large Australian shareholder base and the administrative costs associated with that base, Rule 3.2 of the Company's Constitution provides the Company with the power to sell unmarketable parcels of shares, at the Company's cost, and to remit the proceeds to the shareholders whose shares have been disposed of in this manner. In many cases, such a sale may benefit the shareholders involved as it will allow their shares to be readily sold on the ASX (which they might otherwise find difficult to do due to the small size of their shareholding) and there will be no brokerage costs payable by them on the sale (as these will be borne by the Company).
The sale of unmarketable parcels may reduce the number of shareholders on the Australian Share Register by up to 828, which is approximately 52% of the total number of shareholders of the Company.
This notice is to inform you, and all other holders of unmarketable parcels of shares on the Australian Share Register, that the Company intends to invoke the provisions of Rule 3.2 of the Company's Constitution and sell your unmarketable parcel. If you do not wish for your shares to be sold you must complete and return the Notice of Retention on the reverse of this notice to our Share Registry by 19 August 2005.
If you wish your shareholding to be sold there is no need to do anything. As soon as is practical after 19 August 2005 the Company will endeavour to arrange the sale at the prevailing market price and the proceeds from that sale will be remitted to you.
Should you have any queries in relation to this matter please contact the Company by telephone on (08) 9389 8611 or by facsimile on (08) 9389 8612 or the Company's share registry, Security Transfer Registrars by telephone on (08) 9315 2333 or by facsimile on (08) 9315 2233.
GIPPSLAND LIMITED
RS (Sam) Middlemas Company Secretary
AR1 Price at posting:
0.0¢ Sentiment: None Disclosure: Held
