Takeover ?, page-83

@ralphmouth

I would also like the company to be more open as to whether there will be a return to shareholders

Item 3.10(e) on page 13 of the Havilah Notice of Meeting dated 29 July 2022, it stated under Advantages of the Proposed Transaction: "monetisation of the Kalkaroo Project gives the Board the option to make a share buy-back, a return of capital, or pay a special dividend to Shareholders consistent with its stated objectives."

... would love the company to inform the market of the tax impact of the transaction

On page 21 of the Havilah Notice of Meeting dated 29 July 2022, the tax impact of the transaction was set out.



Also, see Schedule 2 on page 22. Note 3(iii) stated: "Taxation has been applied on the Completion Payment at the notional rate of 30%, which represents the estimated tax rate for the Kalkaroo Transaction. The Company's Annual Report for the financial year ended 31 July 2021 disclosed income tax losses of $74,685,419 and the impact of these income tax losses has been used to offset estimated tax payable."

For the Kalkaroo Transaction, a provision for income tax of $39,094,734 was estimated.

All things being equal, that would also be the amount of franking credits for any future dividend.

From Schedule 2 you can also determine the probable minimum and possible maximum of the capital return. If a capital return was to be made, it would be subject to Havilah shareholder approval and ATO approval for the relevant tax impact and quantum. The tax impact of a capital return would depend on if you held your Havilah shares on capital account versus revenue assets or as trading stock.

Cheers

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.