Timing for final Court orders for capital return

Posted on 22 December 2014

Timing for final Court orders for capital return

Final court orders approving the return of approximately $60 million of capital to shareholders by way of a Scheme of Arrangement under Part 15 of the Companies Act 1993 are expected in late January.

New Zealand Oil & Gas has been advised by the High Court that the time line is affected by the High Court closure over the Christmas and New Year holiday period.

The expected record date for determining the entitlements of shareholders to participate in the Scheme is expected to be early February 2015. Ten business days notice will be given before that record date is set and five business days after the record date, New Zealand Oil & Gas will cancel one in five ordinary shares and pay to each holder of ordinary shares NZ75 cents for each ordinary share cancelled, effectively returning capital of NZ15 cents per share.

New Zealand Oil & Gas has received a binding ruling from Inland Revenue which has confirmed that the proposed return of capital by New Zealand Oil & Gas to its shareholders will not be treated as dividends and will not be subject to tax.

Chief Executive Andrew Knight says the capital return will improve the balance sheet performance of New Zealand Oil & Gas.

“The company has a robust balance sheet with no debt, and in the near term expects increasing cash flows from increased levels of production from the Tui oil fields. Consequently, the company’s cash on hand will grow well beyond what the business requires for its planned activities.”

The scheme of arrangement will take effect if it receives approval from the High Court in accordance with section 236 of the Companies Act 1993 and final orders are granted.

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