iSentric Spin-off - Apportionment of CGT Cost Base
The Notice of Meeting for the Extraordinary General Meeting held on 25 August 2014 (Notice of Meeting) includes the following statement on page 24:
"(a) Cost Base of Donaco Shares and OMI Distribution Shares and the CGT Date of Acquisition of the OMI Distribution Shares
The CGT cost base and reduced cost base of the Donaco Shares and the OMI Distribution Shares will be respectively calculated by reasonably apportioning the CGT cost base and reduced cost base of the Donaco Shares, worked out just before the Distribution Date, as between each Donaco Share and each OMI Distribution Share held immediately after the Distribution.
This apportionment is to be based on the relative actual market values of the Donaco Shares and the OMI Distribution Shares (or a reasonable approximation of those market values) just after the Distribution. Donaco will provide Donaco Shareholders with this information after the Distribution.
The OMI Distribution Shares will be taken to have been acquired, for CGT purposes, on the same date as the original Donaco Shares were acquired."
In order to calculate the reasonable approximation of the market values of Donaco shares and iSentric shares, Donaco has applied the volume weighted average price (VWAP) of the shares as traded on the ASX over the five days following iSentric's re-admission to quotation. For Donaco shares, the five day VWAP is 99.9 cents, giving a market value of $460,490,608. For iSentric shares, the five day VWAP is 26 cents, giving a market value of $19,954,210.
Accordingly, of the combined value of $480,444,818, Donaco shares comprise 95.85%, and iSentric shares comprise 4.15%. The CGT cost base of each share held by Donaco shareholders receiving iSentric shares under the distribution should be apportioned accordingly.
Example: A Donaco shareholder has a CGT cost base of $1.00 for Donaco shares. The reduced cost base of the Donaco shares is now $0.9585. The cost base of the iSentric shares received under the distribution is $0.0415. For CGT purposes, the iSentric shares are taken to have been acquired on the same date as the original Donaco shares.
Distribution of Cash Proceeds to Selling Shareholders
The Company also announces that all of the iSentric shares contributed to the Sale Facility, as defined in the Notice of Meeting, have now been sold on market. After deducting the costs of the Sale Facility, each Selling Shareholder will receive a cash payment of 19.81973569 cents per ICU share.
Payments will be distributed by cheque, or electronic funds transfer for those Donaco shareholders who have provided bank details, over the next week.
About Donaco International Ltd
Donaco's largest business is the Star Vegas Resort & Club, a successful casino and hotel complex in Poipet, Cambodia, on the border with Thailand. Star Vegas was established in 1999, and is the largest and highest quality of the Poipet casino hotels. The property has more than 100 gaming tables, more than 1400 slot machines, and 385 hotel rooms.
Donaco's flagship business is the Aristo International Hotel, a successful boutique casino in northern Vietnam, located on the border with Yunnan Province, China. Established in 2002, the property has recently been expanded to a brand new five star resort complex with 400 hotel rooms. Donaco is a pioneer casino operator in Vietnam, and owns a 95% interest in the business, in a joint venture with the Government of Vietnam.
Donaco International Ltd