Fairfax
announces dividend rate and allocation of Fairfax Preference Shares
SYDNEY, December 12, 2001 -- The offer by John Fairfax Holdings Limited [ASX:FXJ] of PRESSES
(Preferred Reset Securities Exchangeable for Shares) has closed oversubscribed. Fairfax will allot 2.5 million PRESSES to the value of $250 million. The dividend rate has been set at 6.65%.
As a result of the large number of applications received, it has not been possible to allocate the full amount of PRESSES applied for to all applicants. In accordance with the policy stated in the prospectus, Fairfax shareholders and employees who applied using their personalised application forms will receive a priority allocation over general applicants.
The allocation details are set out below.
DIVIDEND RATE
As outlined in the Prospectus, the dividend rate will be fixed until 12 December 2006 at 6.65% being the greater of 6.00% per annum, or the swap rate prevailing on 12 December 2001 (the date of allotment of the PRESSES) plus 1.00%.
SHAREHOLDER AND EMPLOYEE PRIORITY APPLICANTS
All shareholder and employee priority applicants who applied for up to 100 PRESSES ($10,000) will receive the full amount of their application. Applications for more than 100 PRESSES have been scaled back so that each such applicant will receive 20% of the additional PRESSES applied for above 100 ($10,000). Allocations are subject to a maximum of 250 PRESSES ($25,000). Fractional allocations will be rounded up to the nearest whole number.
GENERAL PUBLIC APPLICANTS
Due to the strong demand from existing Fairfax shareholders and employees, it will not be possible to provide an allocation of PRESSES to general public applicants. All application monies received from such applicants will be fully refunded.
ALLOTMENT CONFIRMATION NOTICES AND REFUND CHEQUES
Allotment confirmation notices and refund cheques (where required) will be despatched on
17 December 2001.
TRADING OF PRESSES ON THE ASX
It is expected that the PRESSES will commence trading on the ASX on a deferred settlement basis on 13 December 2001, and will trade under ASX code FXJPA. All applicants will be notified by mail of their allocation of PRESSES. It is expected that normal trading of the PRESSES will commence on 18 December 2001.
It is the responsibility of each applicant to confirm their holding before trading in PRESSES on a deferred settlement basis. Applicants who sell shares before receiving their holding statements or allotment confirmation notices do so at their own risk.
Applications that were received late or accompanied by dishonoured cheques will not be allocated any PRESSES.
All enquiries regarding allocations should be directed to the Fairfax PRESSES Information Line on 1300 301 050.
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