This section describes the structure of stapled securities and how they work.
Please note that Envestra's stapled security structure was terminated on 29 May 2009 when the final repayment of principal on the Company's Loan Notes occurred.
How they work
Each Stapled Security comprises one Loan Note and one Share. The components can only be traded as a single unit.
At the time of listing on the Australian Stock Exchange in August 1997, the Stapled Security structure was a 30¢ Share and 70¢ Loan Note.
Distributions to investors will take one, or a combination, of the following forms:
- interest payments on the Loan Notes
- repayments of Loan Note principal
- dividends on the Share component
- other distributions (including return of capital on the Shares)
An illustration of how the nominal value of the components of the Stapled Security could vary over time is as follows:
Taxation of Distributions
Investors should seek their own professional taxation advice based on their personal circumstances.
The repayment of the Loan Note principal is not taxable in the hands of the shareholder, but it will be taken into consideration by the Commissioner of Taxation in determining whether a capital gain or loss has occurred on the sale of the Stapled Securities. The interest paid on the Loan Notes is considered taxable income and should be included as a dividend in shareholders' Tax Returns.
An illustration of growth in the nominal value of the components of the Stapled Security is as follows:
* Note: In this example the impact of indexation has not been included.
|
Amount Paid
|
|
| 1997/1998 |
7.75¢
|
| 1998/1999 |
8.15¢
|
| 1999/2000 |
9.00¢
|
| 2000/2001 |
9.25¢
|
| 2001/2002 |
9.50¢
|
| 2002/2003 |
9.50¢
|
| 2003/2004 |
9.50¢
|
| 2004/2005 |
9.50¢
|
| 2005/2006 |
9.50¢
|
| 2006/2007 |
9.50¢
|
| 2007/2008 |
9.50¢
|
| 2008/2009 |
7.25¢
|
| 2009/2010 |
5.50¢
|
| 2010/2011 (forecast) |
5.50¢
|
Payment of distributions
Distributions to shareholders are paid directly into bank, building society or credit union accounts in Australia. The payments are electronically credited on the distribution payment date and confirmed by payment advices sent through the mail.
Distribution to shareholders (cents)
| Paid |
Loan Note
|
Interest
|
Unfranked Dividend |
Total
|
Loan Note Balance
|
| 28/11/97 |
3.77
|
0.88
|
4.65
|
66.23
|
|
| 29/05/98 |
1.45
|
1.65
|
3.10
|
64.78
|
|
| TOTAL |
5.22
|
2.53
|
7.75
|
||
| 27/11/98 |
3.06
|
1.83
|
4.89
|
61.72
|
|
| 28/05/99 |
1.54
|
1.72
|
3.26
|
60.18
|
|
| TOTAL |
4.60
|
3.55
|
8.15
|
||
| 26/11/99(1) |
3.59
|
1.81
|
5.40
|
56.59
|
|
| 26/11/99(2) |
3.59
|
0.09
|
3.68
|
56.59
|
|
| 26/05/00 |
1.90
|
1.70
|
3.60
|
54.69
|
|
| TOTAL (1) |
5.49
|
3.51
|
9.00
|
||
| TOTAL (2) |
5.49
|
1.79
|
7.28
|
||
| 24/11/00 |
3.77
|
1.78
|
5.55
|
50.92
|
|
| 25/5/01 |
2.05
|
1.65
|
3.70
|
48.87
|
|
| TOTAL |
5.82
|
3.43
|
9.25
|
||
| 26/11/01 |
3.98
|
1.72
|
5.70
|
44.89
|
|
| 29/04/02 |
2.23
|
1.57
|
3.80
|
42.66
|
|
| 29/04/02(3) |
2.23
|
0.20
|
2.43
|
42.66
|
|
| TOTAL |
6.21
|
3.29
|
9.50
|
||
| TOTAL(3) |
2.23
|
0.20
|
2.43
|
||
| 25/11/02 |
3.99
|
1.71
|
5.70
|
38.67
|
|
| 29/04/03 |
2.26
|
1.54
|
3.80
|
36.41
|
|
| TOTAL |
6.25
|
3.25
|
9.50
|
||
| 28/11/03 |
3.87
|
1.83
|
5.70
|
32.54
|
|
| 30/04/04 |
2.18
|
1.62
|
3.80
|
30.36
|
|
| TOTAL |
6.05
|
3.45
|
9.50
|
||
| 30/11/04 |
3.87
|
1.83
|
5.70
|
26.49
|
|
| 30/04/05 |
2.21
|
1.59
|
3.80
|
24.28
|
|
| TOTAL |
6.08
|
3.42
|
9.50
|
||
| 30/11/05 |
3.87
|
1.83
|
5.70
|
20.41
|
|
| 30/04/06 |
2.27
|
1.53
|
3.80
|
18.14
|
|
| TOTAL |
6.14
|
3.36
|
9.50
|
||
| 30/11/06 |
3.87
|
1.36
|
0.47
|
5.70
|
14.27
|
| 31/05/07 |
2.27
|
1.07
|
0.46
|
3.80
|
12.00
|
| TOTAL |
6.14
|
2.43
|
0.93
|
9.50
|
|
| 30/11/07 |
3.87
|
0.90
|
0.93
|
5.70
|
8.13
|
| 30/05/08 |
3.19
|
0.61
|
3.80
|
4.94
|
|
| TOTAL |
7.06
|
1.51
|
0.93
|
9.50
|
|
| 28/11/08 |
4.13
|
0.37
|
4.50
|
0.81
|
|
| 29/05/09 |
0.81
|
0.05
|
1.89
|
2.75
|
|
| TOTAL |
4.94
|
0.42
|
1.89
|
7.25
|
0.00
|
| 30/10/09 |
0.00
|
0.00
|
2.75
|
2.75
|
0.00
|
| 30/04/10 |
0.00
|
0.00
|
2.75(4)
|
2.75
|
0.00
|
| TOTAL |
0.00
|
0.00
|
5.50
|
5.50
|
0.00
|
(1) Securities issued 25 August 1997
(2) Securities issued 24 September 1999
(3) Placement securities issued on 8 March 2002
(4)The dividend paid on 30 April 2010 was franked 54.6%. It is not expected that future dividends will be franked for the foreseeable future.
Distributions were for the six months ended 31 March and 30 September and were normally paid in late May and November.
Payment of Dividends
From October 2009, payments to shareholders are in the form of unfranked dividends.
For recent dividend announcements refer to the following link:
Latest News - Media Releases
Information related to the Stapled Securities issued by Envestra may be obtained from the Company's Share Registry:
Link Market Services
Visit the Link Market Services website above for more information.
Link Market Services Ltd
Level 12
680 George Street
Sydney NSW 2000
Postal Address
Locked Bag A14
Sydney South NSW 1232
For callers in Australia 02 8280 7788
Facsimile 02 9287 0309
For International callers 61 2 8280 7788
Facsimile 61 2 9287 030
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Earnings Revision – Year ended 30 June, 2010
