Exco Resources (ASX: EXS) is tabling a resolution for the November AGM to seek shareholder approval for a capital reduction and return of $0.10 per share - which equates to around $35.6 million.
Last week Exco received a Draft Class Ruling from the Australian Taxation Office indicating that the proposed distribution will not be taxed as a dividend.
Should the capital reduction be approved by the shareholders at the AGM, the board will declare a special dividend of $0.28, payable simultaneously with the capital return, which importantly will be fully franked.
The Record Date for both payments will be 2 December 2011.
The combined distributions will represent a return to shareholders of $135.3 million (fully diluted) in accordance with the company’s stated intentions following the sale of the Cloncurry Copper Project to Xstrata plc (LON: XTA).
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21076/exco-resources-plans-capital-reduction-and-a356m-return-to-shareholders-21076.html
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