16/09/2008 - 14:40

Paterson underwrites $13m ISS return

16/09/2008 - 14:40

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Nedlands-based software provider ISS Group Ltd has entered into an underwriting agreement with Paterson Securities Ltd for its proposed $13 million return of capital to shareholders.

Paterson underwrites $13m ISS return

Nedlands-based software provider ISS Group Ltd has entered into an underwriting agreement with Paterson Securities Ltd for its proposed $13 million return of capital to shareholders.

 

Below is the full announcement:

ISS Group Limited (ISS) has previously advised that it proposes to return capital to shareholders out of proceeds received from the exercise of listed ISSO options which expire on 30 September 2008.

The Company is pleased to advise that it has entered into an Underwriting Agreement with Paterson Securities Limited that will ensure the full amount of the option proceeds (approximately $13.0 million) is received. Any shortfall from the option exercise will be taken up by the institutional and sophisticated clients of Paterson Securities Limited.

Accordingly, the Company is pleased to confirm that, subject to the underwritten option proceeds having been received and shareholder approval also being received, the amount of capital return to shareholders will be 9.0 cents per share.

A timetable for the general meeting and capital return including the payment date will be announced shortly.

The proposed capital return is to be funded entirely out of the option exercise proceeds.

Following the proposed capital return, the Board is satisfied that Company will continue to have sufficient cash reserves and financial liquidity such that the capital reduction will not have any negative impact on the Company's ability to continue funding or growing its business.

The proposed capital return of 9.0 cents is in addition to the final fully franked dividend declared of 1.75 cents.

The record date for the dividend is 26 September 2008. All option holders intending to be entitled to the dividend must exercise their options prior to the record date.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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