Participants are advised that at an annual general meeting held on 26 October 2018, shareholders of Insurance Australia Group Limited (IAG) voted on resolutions to approve a $592 million capital reduction and a consolidation of Company’s shares.

Following approval of the return of capital and share consolidation;

• post-consolidation shares will trade on a deferred settlement basis (ASX Code: IAGDA), from 31 October 2018 to 07 November 2018 (inclusive), and shares will resume trading on a T+2 basis (ASX Code: IAG) from 08 November 2018;

• the capital reduction will be effected by way of a return of capital to each registered shareholder of the Company as at 01 November 2018 of A$0.195 per share (the “Capital Return”);

• the Company has declared to pay a fully-franked special dividend of A$0.055 per share (the “Special Dividend”) held at that time, calculated on a pre-consolidated basis; and

• the share consolidation will involve the conversion of every one share on issue into 0.976 shares in the Company (“Share Consolidation”).

For more information about the corporate action and the timetable, please refer to the market announcements of IAG.

What do I need to do by When?

Participants are advised that ASX is not able to disseminate corporate action messages in relation to the Capital Return and Special Dividend, therefore trading on ASX Trade will not be tagged XC (ex-return of capital) and XD (ex-dividend).  The corporate action messages is disseminated via a Reconstruction and the trading on ASX Trade will be tagged Reconstructed (RE) from 31 October 2018.

Participants are reminded that CHESS basis of movement overrides with respect the Capital Return and/or Special Dividend will not be possible and as a result all pre-reconstruction transfers that occur up until the record date will effectively be transferred on a Cum-Capital Return and/or Cum-Dividend basis.

Need more information?

Issued by

Cheng Zhang, Post Trade Operations

Contact information

Cheng Zhang
1800 623 571
cad@asx.com.au

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