Interesting times for some of the banks.... SGB and...

Interesting times for some of the banks.... SGB and BOQ...




St.George to carry out $300m share buy-back
16/12/05 By: Alex Lu

St.George Bank Limited (SGB) today announced a $300 million off-market buy-back to be completed in February 2006. Under the buy-back process, eligible shareholders will be able to tender St.George ordinary shares at discounts from 8% to 14% to the market price or final price tender.



The final buy-back price will be determined based on the tenders lodged by eligible shareholders and the market price.

The bank advised that the buy-back, which forms part St George’s capital management program for 2006, would be completed by 21 February next year.

Chief financial officer, Mr Steve McKerihan said the initiatives were aimed at optimising the level and mix of the group’s capital base in order to support growth and reduce overall funding costs.

“The board has considered the various capital management alternatives available to St.George and believes that it is in the best interests of St.George and its shareholders to pursue the off-market share buy-back as a component of St.George’s capital management program,” he explained.

“The positive impact on earnings per share from the buy-back will be enhanced as the buy-back price will be at a discount of at least 8% to the prevailing market price.”

Although the buy-back will result in a reduction in St.George’s franking credits, the bank said it expects to continue to be in a position to fully frank ordinary dividends into the foreseeable future.

Shares in St George Bank were up 16c to $28.40 at the close of trading Thursday.