As announced to the market on Friday 5 October 2018, Phileo will seek shareholder approval to implement the selective capital reduction, which is expected to be completed in January 2019.
Under the proposal, shareholders have the option to elect to participate in the selective capital reduction and receive $12.66 cash per cancelled share, or to opt-out and continue to be a Phileo shareholder. Depending on the number of shares cancelled, Mr Koh’s shareholding in Phileo will increase up to a maximum of 56.16%, in what would then be an unlisted, privatised entity.
Jeremy Lanzer commented: “This is a milestone transaction for Phileo. Mr Koh’s leadership has seen significant value created for shareholders, and a capital reduction and privatisation is a ‘win-win’ outcome. Shareholders have long called for a return of funds and this transaction represents an opportunity to realise value at an attractive price. Continuing shareholders (including Mr Koh) can reap the rewards of future growth in Phileo’s business without the regulatory obligations and related ongoing costs associated with being listed on the ASX. Arnold Bloch Leibler is proud to be assisting Mr Koh in delivering this fantastic outcome.”
Phileo Australia Limited is a property investment company engaged in the development and rental of properties in Australia.
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