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Sale promises Capital windfall

Wednesday 9th of March 2005

It said the money, expected by one analyst to be more than $30 million, would be distributed to investors as a return of capital on a tax-free basis, either through a share buyback or cancellation.

But shareholders were also delivered the less palatable news that the management sale could reduce the overall earnings available to be distributed to them.

Capital has proposed a way around the problem: "The total number of shares outstanding will be reduced by the sale buyback or cancellation of shares," it said.

"As a consequence of these two offsetting factors, the board considers that the impact on pre-tax earnings on a share basis is not likely to be material."

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