Press Release - DRP Underwrite and Partly Paid Securities

Press Release - DRP Underwrite and Partly Paid Securities

05-Mar-1999

On 1 March 1999 the Directors announced an interim distribution/dividend in respect of the half year to 31 December 1998 of 2.6 cents per security payable on 31 March 1999. The Record Date for determining entitlement to the distribution/dividend is 15 March 1999.

In mid December 1998 all shareholders were notified that the Distribution/Dividend Reinvestment Plans (DRP) would be reactivated for this distribution/dividend at a discount of 5%.

Following amendments to the ASX Listing Rules from 1 February 1999 the Directors have varied the terms of the DRP. The issue price of new Thakral securities will be determined using the weighted average market price over the four trading days (previously five days) up to and including 15 March 1999, discounted by 5%. New securities issued pursuant to the DRP will be allotted on 31 March 1999.

The company has entered into an agreement with Warburg Dillon Read to underwrite the DRP to ensure certainty of capital for the Group. This is expected to result in additional capital in an amount of approximately $12.8 million.

The Thakral family and associates currently has an interest in 48.6% of the issued fully paid securities of the Group comprising 239 million fully paid ordinary securities plus 40 million partly paid securities. They have indicated that they do not intend to participate in the DRP in respect of the distribution/dividend payable on the 31 March 1999. In addition a Thakral family associate has advised that it intends to pay the outstanding amount due on the 40 million partly paid securities prior to the 30 June 1999. This will contribute additional capital of $19.8 million to the Group.

The underwriting of the DRP and take up of options, will result in additional funds available to the Group of $32.6 million. These will initially be used to reduce borrowings.

On Monday, Thakral announced its first half year result was 6.4% ahead of last year and stated that it expects the full year result will exceed last years performance.



Further information contact:
John Hudson
Chief Financial Officer
9272 8888

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