On 31 August 2007 Hansen Technologies Limited (HSN) announced its intention to make a capital return to shareholders of $0.03 per share, subject to receiving confirmation from the Australian Taxation Office (ATO) that the payment would be treated for tax purposes as a return of capital in the hands of shareholders.
Hansen has now been advised, in a draft ATO ruling, that the ATO does NOT support the view that the proposed distribution would be treated as capital in the hands of shareholders, instead the ATO has indicated that they would deem the distribution as an unfranked dividend. Hansen is disappointed with this position and will continue dialogue with the ATO on this matter. It is however recognised that continued dialogue with the ATO will take time and have no certainty as to the outcome.
In an announcement to the ASX on 15 November 2007, Hansen committed, in the event of a negative ATO response, to explore alternative options for making an immediate distribution to shareholders. The Board of HSN has now met and reconfirmed its commitment to make an immediate distribution to shareholders.
Accordingly HSN has decided to cancel the capital distribution, conditionally approved by shareholders at the recent AGM, and instead is pleased to announce an early interim unfranked dividend in respect of the first half of the current fiscal year of $0.03 per share.
The record date for this dividend will be 12 December 2007 with payment scheduled for distribution in the week prior to Christmas. The Director's have also decided to exercise the discretion available to them under the Dividend Reinvestment Plan (DRP) and have set the DRP price per share to be 95% of the weighted average share price of all shares sold on the ASX on the Books' closing date and the four trading days immediately preceding the Books' closing date.
HSN will continue to explore options with the ATO for the return of part of the capital raised in the September 2005 rights issue and depending upon the outcome of those discussions will advise shareholders as appropriate.