Exco Resources Ltd (ASX: EXS) (Company) is pleased to confirm that a resolution will be tabled at the upcoming Annual General Meeting (AGM) of the Company seeking shareholder approval under section 256C of the Corporations Act (2001) for a capital reduction and return of 10 cents per share ($35.6 million) to shareholders.
On Wednesday 19th October the Company received a Draft Class Ruling1 from the Australian Taxation Office indicating that the proposed distribution will not be taxed as a dividend.
Should the capital reduction be approved by the shareholders at the AGM, the board will declare a special dividend of 28 cents per share, payable simultaneously with the capital return. The dividend will be fully franked. The Record Date for both payments will be 2 December 2011.
The taxation implications for each shareholder will depend on the circumstances of the particular shareholder. Accordingly shareholders are encouraged to seek their own professional advice in relation to their tax position.
The combined distributions will represent a return to shareholders of $135.3 million (fully diluted) in accordance with the Company�s stated intentions following the sale of the Cloncurry Copper Project to Xstrata plc.
The AGM will be held at the Rydges Hotel, Hay Street, Perth WA on 24 November 2011. A Notice of Meeting and Proxy Form are attached.
Details in relation to the capital reduction and return are set out in Resolution 5 and the Explanatory Memorandum in the Notice of Meeting.
On behalf of the Board of
Exco Resources Ltd
Barry Sullivan
Chairman
To view the Notice of Meeting & Proxy Form, please click on the following link:
1 The Draft Class Ruling may not be relied on by Exco Shareholders until it is issued in final form by the ATO. The final version of the Class Ruling will be published and notice will be included in the Gazette. Exco will display the final version of the Class Ruling on its website as soon as it becomes available.