Euroz Hartleys directors to cash up in $80m return Sean SmithThe West Australian
Wed, 14 September 2022 4:08PM Sean Smith
Stockbroker and corporate adviser Euroz Hartleys will return $80 million from the sale of its listed investment companies to shareholders via a special dividend and a capital reduction.
Some $40m will be distributed through a special payout 20.27¢ a share, with the balance to be returned via a pro-rata capital reduction and share cancellation that would see shareholders with 10,000 shares pocket about $2030 each.
“This proposed capital management initiative will cancel approximately $40 million of our current issued capital, complete our strategic objective of simplifying our corporate structure while retaining a strong and efficient balance sheet to support WA’s leading financial services business,” executive chairman Andrew McKenzie said.
Euroz Hartleys’ executive directors and senior staff are also major shareholders and will be among the biggest beneficiaries of the cash splash.
With more than 13 million shares each, Mr McKenzie and fellow foundation executive director Jay Hughes are at the top of the queue and will likely pocket more than $5m apiece from the initiatives.
The cash is derived from Euroz Hartley’s sale of Westoz Investment and Ozgrowth to WAM Capital under takeover offers last year, with the broker then selling the WAM shares gained in the bids for $103.9m.
The company said the combination of the dividend and capital reduction “strikes a balance between earnings per share accretion to the company (through a proposed cancellation of shares) and a tax efficient distribution of a fully franked dividend”.
Euroz Hartleys shares closed 1¢ down at $1.52, valuing the group at $300m.
EZL Price at posting:
$1.52 Sentiment: None Disclosure: Held
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