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IMB Ltd (“IMB”) today announces the successful completion of its off-market share buyback (“Buyback”). The Buyback was the first in a series of buybacks that IMB expects to undertake over the medium term.

2.9 million shares were successfully tendered into the Buyback.  All tendered shares were bought back at a Buyback Price of $3.28, representing a 5% discount to the Deemed Market Value1. The total consideration for the shares bought back was $9.5 million.

The outcomes of the Buyback are summarised below:

   

Value of Shares bought back

$9.5 million

Number of Shares bought back

2.9 million

Percentage of Shares on issue bought back

7.3%

Deemed Market Value per Share

$3.45

Buyback discount

5%

Buyback Price per Share

$3.28

Capital Component per Share

$1.18

Fully franked dividend component per Share

$2.10

The Buyback was not subject to a scale back and all tenders were accepted in full.

 

Tax Considerations

The final Class Ruling to be issued by the ATO is expected to confirm that $2.10 of the Buyback Price will be treated as a fully franked dividend and that for Australian capital gains tax purposes, the sale consideration per share will be $1.18, being the Buyback Price less the dividend component of $2.10. Please refer to Section 3 of the Buyback Booklet for information on the taxation treatment of the Buyback. The Class Ruling is expected to be published by mid-November.

Payments

The Buyback proceeds are expected to be dispatched to successful participants by direct credit to their nominated account by Friday 28 September 2012.

Further information

Further information about the Buyback can be found on IMB’s website at www.imb.com.au or in the Buyback Booklet which was mailed to shareholders. Shareholders may also call the IMB Buyback information line on 1300 585 271 from within Australia or 61 2 4298 0190 from outside Australia between 9:00am and 5:00 Monday to Friday (AEST).



1. The Deemed Market Value has been calculated as the volume weighted average price (“VWAP”) of IMB Shares traded on the IMB Market over the 10 days on which Shares traded prior to the announcement of the Buyback on 31 July 2012 adjusted for the movement in the S&P/ASX Small Ordinaries index from the date of the announcement of the Buyback to the Closing Date. The VWAP was $3.19 and the S&P/ASX Small Ordinaries index increased by 8.2% from 2,111.4 on 31 July 2012 to 2,284.2 on 19 September 2012.