Sydney, Australia, July 22, 2014 - (ABN Newswire) - Donaco International Limited (ASX:DNA) (Donaco) lodges the attached Notice of Meeting which will be dispatched to shareholders tomorrow, for an Extraordinary General Meeting (EGM) to be held on 25 August 2014, in Sydney.
The purpose of the EGM is to seek shareholder approvals to facilitate the proposed spin-off of iSentric Sdn Bhd (iSentric), Donaco's mobile technology business. These approvals relate specifically to the proposed in specie distribution to Donaco shareholders of shares in iSentric.
Under the distribution, Donaco shareholders will receive approximately 0.13 shares in iSentric for every Donaco share held. The iSentric shares will be valued at 20 cents each, but the market price may rise and fall after iSentric is separately listed on the ASX.
The last date for trading of Donaco shares on the ASX with an entitlement to iSentric shares is 8 September 2014. Donaco shareholders will have their entitlements determined by the share register as at 7:00pm (Sydney time) on the record date of 12 September 2014.
Donaco shareholders who would receive less than $500 worth of iSentric shares will not receive shares via the distribution. Instead, their entitlements will be pooled with all others and sold, via a share sale facility. The cash proceeds of the sale, less costs, will be remitted to shareholders. The cut-off point for receiving iSentric shares is 19,178 Donaco shares. If a Donaco shareholder holds fewer shares on the record date, their entitlement to iSentric shares will be sold as above, and the shareholder will receive the net proceeds in cash.
Donaco shareholders with 19,178 shares or more may also elect to sell their iSentric shares via the share sale facility. Full details are provided in the attached booklet. The share sale election form must be received by Donaco's share registry by 7:00pmSydney time on 12 September 2014.
Investors should also note that the distribution includes a capital return component. Accordingly, if the distribution proceeds, the exercise price of Donaco options currently on issue will be reduced by 2 cents, as required by the Listing Rules. In particular, the exercise price of the listed DNAO options will be reduced from 30 cents to 28 cents.
If all required approvals are given, Donaco currently expects that the transaction will be completed, and iSentric will be trading on the ASX, by mid September 2014.
To view the EGM Agenda, please visit:
About Donaco International Limited:
Donaco International Limited (ASX:DNA) operates leisure, entertainment and associated technology businesses across the Asia Pacific region. Our flagship business is the Lao Cai International Hotel, a successful boutique casino in northern Vietnam. The Lao Cai International Hotel was established in 2002, and is located on the border with Yunnan Province, China. Donaco operates the business and owns a 95% interest, in a joint venture with the Government of Vietnam.