Telecom Receives High Court Approval And Confirms Dates For Capital Return – NZ

LAWFUEL – The Legal Newswire – Telecom has received High Court approval for its Scheme of Arrangement to return approximately $1.1 billion to shareholders.

The capital return will see the cancellation of one ordinary share in every nine held by each shareholder on the record date – in return each Telecom shareholder will receive NZ$4.88 for every ordinary share of their holding that is cancelled.

The capital return was approved by Telecom shareholders at the special meeting of shareholders held on 17 August 2007.

Now that High Court approval has been received, Telecom will proceed with the capital return and the American Depositary Receipt (ADR) ratio change (as described in the Notice of Special Meeting relating to the capital return). The existing ratio of one ADR to eight Telecom shares will change to one ADR to five Telecom shares.

From an ADR holder’s perspective the combination of the capital return and ratio change will result in:

– A cash receipt of approximately US$300 for every 100 ADRs held (which is an estimated figure based on a USD/NZD exchange rate of NZ$1 equal US $0.70) – The receipt of 42.2% more ADRs

Telecom confirms that the record date for Australian Securities Exchange purposes will be 21 September 2007.

Telecom also confirms that the following timetable will apply to the completion of the capital return and the ADR ratio change:


* Last day for trading in pre-reorganisation securities (Australian Securities Exchange): 14 September 2007

* “Ex” dates – New Zealand Exchange: 24 September 2007 – Australian Securities Exchange (trading on a “deferred settlement” and “ex return of capital” basis commences on Australian Securities Exchange): 17 September 2007 – New York Stock Exchange: 25 September 2007

* Books closing/record dates – New Zealand, Australian & New York Stock Exchanges: 21 September 2007

* Share cancellation date: 24 September 2007

* Despatch date for Australian Securities Exchange purposes (deferred settlement trading ends): 28 September 2007

* Normal T+3 trading on Australian Securities Exchange recommences: 1 October 2007

* Payment dates – New Zealand, Australia: 5 October 2007 – New York: 12 October 2007

NEW YORK STOCK EXCHANGE DATES – ADR ratio change * “Due bill” trading – Due bill trading begins: 19 September 2007 – Due bill trading ceases: 28 September 2007

* Record date – Record date for ratio change: 21 September 2007

* ADR ratio change and new ADRs issued: 24 September 2007

* Ex entitlement date for issue of new ADRs: 25 September 2007


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