IMX Resources to distribute Uranex shares to IMX shareholders

IMX Resources (ASX: IXR) will distribute its 46.3 million share holding in Uranex NL (ASX: UNX) to IMX’s existing shareholders on a one Uranex share for every 5.67 IMX shares held basis.

This equates to a $0.07 per share dividend to IMX shareholders.

The transaction will be by way of an in specie distribution, being a part capital reduction and part payment of a dividend in kind, and will continue to simplify the structure of IMX, allowing it to concentrate on its core business.

The distribution follows the company's decision to prioritise its activities into iron ore and steel related products. IMX recognises that its investment in Uranex is not part of IMX’s core business but believes that Uranex has a strong future and project base.

Shareholders will be given the opportunity to vote on the relevant resolutions at the upcoming annual General Meeting expected to be held in early November 2011, and therefore determine if they wish to obtain their interest in Uranex as a direct investor.

The distribution is subject to a number of conditions:

- obtaining shareholder approval for the return of capital component of the Distribution;
- obtaining shareholder approval to include a clause in the Company’s constitution to allow the return capital to shareholders in the form of shares in another company;
- obtaining a favourable ruling on the tax consequences for IMX and its shareholders from the Australian Taxation Office; and
- obtaining appropriate ASIC and other regulatory relief and approvals to enable the Distribution to occur in the manner proposed and for overseas shareholders to be treated as set out below.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19125/imx-resources-to-distribute-uranex-shares-to-imx-shareholders-19125.html