once again we get shafted

Once more my dividend per share is dropping. More shares on issue rather than pay out cash.

So pissed off at the moment as my retirement funding goes down the crapper!

CRF
10 May 2012
Conditional settlement of class actions
Centro Retail Australia (ASX: CRF) has today reached an agreement to settle six proceedings, including a number of related shareholder class actions, brought against certain pre-aggregation Centro entities on behalf of group members represented by Maurice Blackburn and Slater & Gordon in the Federal Court in Melbourne.

These proceedings were commenced on behalf of shareholders who acquired securities in (what was then) Centro Properties Group (formerly CNP, now CNPR) and Centro Retail
Group (formerly CER) in 2007 and early 2008.

PricewaterhouseCoopers (Centro’s auditors during the relevant period) and certain of its related entities (PwC) are sued in a number of the shareholder class actions and are also parties to the settlement.

Centro Retail Australia will contribute $85 million to a total settlement amount in respect of all proceedings of $200 million, which amount will be allocated between the Maurice Blackburn and Slater & Gordon claims. The balance of the total settlement amount will be comprised of:
· $67 million from PwC;
· $10 million from CNPR; and
· $38 million from available insurance proceeds.

The shareholder class actions were filed in 2008 and 2010 against pre-aggregation entities, and sought damages substantially greater than the total settlement amount. The hearing commenced in the Federal Court on 5 March 2012 and was scheduled to run until early June 2012. The proceedings, which focussed on the disclosure of liabilities in the Centro Group’s audited accounts for FY07, represent some of the most complex shareholder class
actions in Australia to date, with over twenty parties and a significant number of crossclaims.

More than thirty lay and expert witnesses were called to give evidence at the trial.

The Chairman of CRF, Dr Bob Edgar said today, “The settlement of the proceedings is a commercial decision taken to allow the company to put this matter behind it and continue its focus on adding value for its investors without the distraction and expense of a continuing
trial and any subsequent appeals.”

“Resolution of this matter better positions CRF to continue to progress a number of its recently announced strategic initiatives, without distraction, including seeking strategic partners to invest in certain of its assets and potentially obtaining for the first time an investment grade credit rating allowing CRF to restructure its balance sheet and core lending facilities.”

The settlement of the proceedings is subject to approval of the Court and will be administered in accordance with a Settlement Scheme. If the settlement is approved by the
Federal Court, the proceedings, including the class action proceedings, will be dismissed without admission of liability.

CRF Financial Implications, including impact of “CATS”
As part of the aggregation process leading to the formation of CRF in December 2011, Class Action True-up Securities or “CATS” were issued to those CRF Securityholders who were not exposed to the shareholder class actions pre-aggregation. These parties were issued with 1 CATS for every 1 CRF stapled security held by them on aggregation. CATS were not issued to existing CER securityholders.

ASX/MEDIA RELEASE