Why has OZ Minerals implemented the Unmarketable Parcel Sale Facility and the Voluntary Share Sale Facility?
The Unmarketable Parcel Sale Facility and the Voluntary Share Sale Facility (‘the Sale Facilities’) enable OZ Minerals share holders with 5,000 shares or less to sell those shares without incurring brokerage or handling costs.
By reducing the number of holdings of 5,000 shares or less on the OZ Minerals’ share holder register, it will also help OZ Minerals to reduce administrative costs associated with servicing large numbers of relatively small share holdings.
The brokerage and handling costs associated with selling a relatively small parcel of shares are often a disincentive for share holders to sell their shares. To assist share holders who wish to sell their OZ Minerals shares, OZ Minerals will pay the brokerage and other costs associated with selling these shares through the Sale Facilities.
What is an unmarketable parcel of shares?
An unmarketable parcel of shares is a parcel of OZ Minerals (ASX: OZL) shares valued at less than A$500. The company assessed which shareholders held unmarketable parcels at the close of trading on the ASX on 1 September 2009 and at that time an unmarketable parcel was 469 shares or less.
Is participation in the Sale Facilities optional?
Yes, participation in the Sale Facilities is optional.
Unmarketable Parcels Sale Facility
All shareholders that held an unmarketable parcel of OZ Minerals shares as at 1 September 2009 were sent written notification on 4 September 2009 which explained the Unmarketable Parcels Sale Facility and gave share holders the option to retain their OZ Minerals shares. To retain shares under the Unmarketable Parcels Sale Facility shareholders must return their PINK ‘Share Retention Form’ so that it is received by the OZ Minerals’ Share Registry (Link Market Services Limited) by 19 October 2009. To sell shares under the Unmarketable Parcels Sale Facility no action is required.
Voluntary Share Sale Facility
All shareholders that held a marketable parcel of 5,000 shares or less were sent correspondence on 4 September 2009 in relation to the Voluntary Share Sale Facility. To retain their shares under the Voluntary Share Sale Facility shareholders are not required to take any action. To sell shares under the Voluntary Share Sale Facility shareholders must return the GREEN Sale Instruction Form so that it is received by the OZ Minerals’ Share Registry (Link Market Services Limited) by 19 October 2009. If you are broker sponsored then you will need to send your GREEN Sale Instruction Form to your broker to be stamped rather than sending it directly to the Share Registry.
How will my OZ Minerals shares be sold?
OZ Minerals appointed Goldman Sachs JBWere to act as execution-only broker to sell OZ Minerals shares on the ASX under the Sale Facilities. Following the determination of the OZ Minerals shares to be sold under the Sale Facilities, these shares will be sold as soon as reasonably practicable.
What is the date that my OZ Minerals shares will be sold?
The sale shares under both the Voluntary Share Sale Facility and the Unmarketable Parcels Sale Facility were sold on 23 October 2009. The volume weighted average price obtained for the sale of the shares in both of the facilities was $1.2481 per share.
Will I have to pay brokerage or handling costs?
No, you will not have to pay brokerage or handling costs if your OZ Minerals shares are sold under the Sale Facilities. OZ Minerals will pay these costs on your behalf.
How much will I receive for my shares under the Sale Facility?
The sale shares under both the Voluntary Share Sale Facility and the Unmarketable Parcels Sale Facility were sold on 23 October 2009. The volume weighted average price obtained for the sale of the shares in both of the facilities was $1.2481 per share.
When will I receive the proceeds?
For shareholders participating in the Sale Facilities, payment will be made by direct credit if shareholders have notified OZ Minerals of their banking details, or alternatively cheques will be mailed to participants at their registered address. Payments will be made within two weeks of the last sale of shares. All proceeds will be paid in Australian dollars.
How should the proceeds be treated for tax purposes?
The proceeds from the Sale Facilities of the OZ Minerals share should be treated similarly to the proceeds received from a normal on-market sale of OZ Minerals shares.
Share holders should seek their own tax advice, as each Shareholder’s circumstances may differ.