Letter to Shareholders - Corporate Changes and Suspension of DRP

Letter to Shareholders - Corporate Changes and Suspension of DRP

08-May-1998

In our last letter to you on the 27th February 1998 we advised a 10.1% increase in profits for the half year ending 31 December 1997, payment of a 2.5 cents distribution on 31 March 1998 and continuation of the DRP except that no discount would be offered.

Your directors wish to advise that having regard to current market circumstances it has been decided to suspend the DRP for the next distribution scheduled for payment in September 1998.

ASX Index Change

In addition to the suspension of the DRP, from 1 May 1998, the Thakral Group securities have moved from the Tourism and Leisure index of the Australian Stock Exchange to the Property Trust sector. As you would be aware, our portfolio comprises not only hotels but retail, commercial and development properties. Accordingly, having regard to the nature of each index, we believe investors will be best served by the Thakral Group securities moving to the Property Trust index. This index more accurately reflects the nature of your investment and has a greater following within the investment community.

Trust Name Change

Recently, you will have received your half yearly distribution from the group. This took the form of a distribution from the Broadbeach International Property Trust (BIPT). A number of shareholders have expressed confusion as to the who BIPT is and why their Thakral distribution should take this form. In order to remove this confusion, we have changed the name of BIPT to Thakral Holdings Trust. Accordingly, future distributions and communications will no longer refer to BIPT but to the Thakral Holdings Trust.


Conversion to Uncertificated Issuer Sponsored Register

Your directors have decided to convert the Thakral Group stapled securities existing certificated register to an uncertificated issuer sponsored sub-register with effect from Monday 27th July 1998. Thakral security holdings maintained on the existing broker sponsored CHESS sub register will not be affected.

The reason for this change is to achieve efficiency in market settlement and transfer processes and thereby provide greater convenience to investors and enable the ASX to move to a three day settlement period in place of the current five day regime.

This means that from the close of business on Friday 24th July 1998 (conversion date) the Thakral Group will no longer issue security certificates and all certificates currently on issue will cease to provide evidence of your ownership of securities in Thakral. In the future a Holding Statement, and not individual certificates, will inform you of the securities you hold in Thakral.

Shortly after the conversion date, the Thakral registry will send to you an initial Holding Statement showing full details of your current Thakral securities.  This statement will list all your certificates which are currently being converted.  You should retain this opening statement in a safe place as a record of your holding as at 27 July 1998.  Subsequent statements will be issued at the end of each month in which you have traded or otherwise changed your holding.  It is not necessary for you to return your old certificates, but it is recommended that you retain them for your own records and for taxation purposes. 

The procedure for buying and selling your Thakral securities after the Conversion Date is essentially the same except when you place an order with your stockbroker you must quote your Securityholder Reference Number (SRN).  This is a personalised number which will be issued to you with your opening statement.  You should keep your SRN in a secure place.

An information booklet which explains issuer sponsership in more detail will be sent to you with your opening Holding Statement.  If you have any questions on your shareholding or on the conversion please contact the Thakral Share Registry, National Registry Services Level 1 Grosvenor Place, 225 George Street, Sydney NSW 2000, Australia on (02) 9371 6060.

Please provide us with your confirmation of release announcement.

Yours sincerely



Andrew Horne
Group Company Secretary

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