On 2 May 2006, NZX filed documents with the High Court seeking initial orders in relation to the proposed return of approximately $16.2 million of capital to shareholders on a pro rata basis, by way of a scheme of arrangement pursuant to Part XV of the Companies Act 1993 between NZX and its shareholders. Under the scheme of arrangement, all holders of ordinary shares will be treated alike and relative holdings of shareholders will not be affected. The exact amount of capital returned will depend on rounding of the number of shares that will be cancelled when the capital is returned.
The High Court has today granted orders directing, amongst other things, NZX to put to holders of its ordinary shares, for their consideration and approval at the upcoming annual meeting of shareholders, the proposed scheme of arrangement.
The arrangement requires approval by a special resolution of ordinary shareholders. NZX's annual meeting of shareholders has been scheduled for Thursday, 8 June 2006 at 3.30pm, at the Icon Room at the Museum of New Zealand Te Papa Tongarewa, Cable Street, Wellington, New Zealand. At the annual meeting, holders of ordinary shares will vote on, amongst other things, a special resolution to approve the scheme of arrangement. Shareholders will shortly receive the notice of annual meeting.
Provided the arrangement receives shareholder approval, NZX will seek final orders from the High Court sanctioning the arrangement. NZX is targeting a return of capital to shareholders by early August 2006. NZX proposes to undertake a one-for-one share split immediately after the return of capital has been effected.
