Overview of Incitec Pivot's $500 million return to shareholders

Incitec Pivot Limited (ASX: $IPL) has confirmed the details and timetable for the return of approximately $500 million to its shareholders. The decision follows the approval received at the 2023 Annual General Meeting on 20 December 2023, where IPL shareholders voted in favor of reducing IPL's share capital by up to $500 million through an equal capital reduction.

Executive commentary on the capital return and special dividend

The company is pleased to announce the details and timetable for the return of approximately $500 million to our shareholders. This decision reflects our commitment to delivering value to our shareholders while maintaining a prudent approach to capital management. We believe that the capital reduction and special dividend will provide an efficient means to return surplus capital to our shareholders, demonstrating our focus on enhancing shareholder returns.

Summary of Incitec Pivot's announcement and outlook

Incitec Pivot Limited (ASX: $IPL) has confirmed the details and timetable for the return of approximately $500 million to its shareholders through an equal capital reduction and an unfranked special dividend. The company expects the Australian Taxation Office (ATO) to issue a Class Ruling following the completion of the capital reduction and payment of the dividend, addressing the Australian income tax implications. The capital return will not affect the number of shares held by each shareholder or the control of IPL. The Board has ensured that the capital reduction is fair and reasonable to IPL's shareholders as a whole and does not materially prejudice IPL's ability to pay its creditors. The company emphasizes that shareholders should seek their own professional advice regarding the income tax implications arising from the capital return and unfranked special dividend. Once the ATO's Class Ruling has been published, IPL will release an ASX announcement confirming the issuance of the Class Ruling. The announcement contains forward-looking statements, and IPL disclaims any responsibility to update or revise any forward-looking statement, except as required by law. The company and its affiliates disclaim any responsibility for the accuracy or completeness of any forward-looking statements.