Capital Return Interim Orders Received

Posted on 20 March 2017

On 8 March New Zealand Oil & Gas announced its intention to seek a court-approved scheme of arrangement to return $100 million of capital to shareholders.   
New Zealand Oil & Gas has now received initial orders from the High Court to seek shareholder approval of the scheme.   
The scheme will involve cancelling one out of every two ordinary shares for a payment of NZ$0.62724388 per cancelled share.  Part-paid shares that have been issued as part of the company's Employee Share Ownership Plan will not participate in the return of capital.
The implementation of the scheme is conditional on:
• approval by shareholders at a special meeting,
• a binding ruling from Inland Revenue that the return of capital under the scheme is not in lieu of a dividend, and
• final court approval.
A shareholders' meeting is expected to be held in April to consider the scheme.   
If shareholders approve the scheme, and the binding ruling is provided by Inland Revenue,  final court orders will be sought to implement the scheme.  Subject to receipt of this court approval, the scheme should become effective in late May.  Any update to this timetable will be announced to NZX.