annual report 2011

IOOF | annual report 2011
41 Subsequent events
On 27 June 2011, the Company announced that the Company
and Deakin Financial Group (DKN) had entered into an
agreement under which the Company, through a wholly
owned subsidiary, proposes to acquire DKN via a scheme of
arrangement. The arrangement to acquire 100% of shares
not already owned by the Group for $0.80 cash is subject to
DKN shareholder approval and as a result, no amounts have
been recognised in the profit or loss or financial position of
the Group at balance date. If accepted, the total consideration
payable to shareholders is estimated at $94 million.
The funds to be provided by the Company will be sourced
from existing cash reserves and an undrawn facility
arrangement with the Commonwealth Bank of Australia (CBA)
(Loan Facility). The Company and the CBA have entered into a
loan commitment letter and term sheet in relation to the Loan
Facility. Under the Loan Facility, CBA has agreed to provide
funding up to $75 million for the purpose of the Company
satisfying the Group’s obligations under the Scheme (including
the payment of the aggregate scheme consideration).
The right of the Company to access funds under the Loan
Facility is subject to certain conditions which will need to be
satisfied or waived by CBA. The interest and establishment
costs associated with the Loan Facility are on commercial
terms.
On 25 August 2011, the Directors declared a final dividend
of 22 cents (2010: 18.0 cents) per ordinary share fully franked
at 30% tax rate in relation to the financial year ended 30 June
2011. The dividend will be paid on 20 October 2011. The total
final dividend payment is estimated at $51,019,000.
On 11 August 2011, Perennial Investment Partners Ltd (a
subsidiary of IOOF Holdings Ltd) received one notice from
a non-controlling shareholder to exercise a buy-back of
shares in Perennial Real Estate Investments Pty Ltd (PREI). The
consideration for the share buy-back is not expected to exceed
$3 million subject to an independent valuation of PREI.
The Directors are not aware of any other event or circumstance
since the end of the financial year not otherwise dealt with in
this consolidated financial report that has or may significantly
affect the operations of the consolidated entity, the results
of those operations or the state of affairs of the consolidated
entity in subsequent financial years.
page 113