Great it posted half the ann. Here is the rest. Sorry about that.
Ann Page 2
If the settlement announced today is approved by the Federal Court, this will trigger an obligation for CRF to issue additional CRF stapled securities (for nil consideration) or make a cash payment to CATS holders. The Board has determined to satisfy this obligation by
issuing additional CRF stapled securities. The number of additional CRF stapled securities to be issued for each CATS will be determined in accordance with the formula in the CATS terms (as set out in the Disclosure Document issued in connection with the aggregation).
The number of CRF stapled securities to be issued under the CATS is calculated by applying the formula on the date the settlement is approved by the Federal Court and depends in part on the total amount of certain legal, expert and other external costs incurred by CRF in connection with the litigation. Accordingly, the number of CRF stapled securities to be issued and the anticipated financial implications cannot be finally determined at this stage.
The litigation settlement and the issue of additional CRF stapled securities to CATS holders is currently expected to result in a dilution of between approximately 6.5% and 7% to both net asset value per security (NAV) and net tangible assets per security (NTA). CRF intends to fund the litigation settlement from existing cash reserves and debt facilities.
The indicative financial implications for CRF of the settlement and the issue of additional CRF stapled securities under the CATS is summarised below:
Pro Forma post litigation settlement and issue under CATS1, 2
NAV ($m) 3,353 New > 3,324
NTA ($m) 3,154 New > 3,125
Securities on issue (m) 1,341 New > 1,427
NAV per Security ($) 2.50 New > 2.33
NTA per Security ($) 2.35 New > 2.19
1 - Includes impact of reversal of $65.8 million CATS fair value provision
2 – Assumes $85 million cash settlement amount plus estimated total external costs of $10 million
The issue of CRF stapled securities under the CATS will not occur until 30 business days after the settlement has been approved by the Court. Following Court approval, holders of CATS will be sent a formal notice regarding the issue of CRF stapled securities to them. Holders do not need to take any further action in order to receive the additional CRF stapled securities.
Following the issue, no further CRF stapled securities will be issued in relation to the CATS, which will expire in accordance with their terms.
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