Lonergan Edwards supports Premium buy-back

27-Jul-2009

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Publication:  Financial Standard
Date:  27 July 2009

Lonergan Edwards supports Premium buy-back
Monday, 27 July 2009 11:30am

Valuation firm Lonergan Edwards & Associates said the Premium Investors proposed share buy back scheme, which is set to be voted on next month, would be a fair outcome shareholders.

The independent experts report, commissioned by the Premium Investors board in accordance with recommendations from the Australian Securities and Investment Commission (ASIC) found the board's proposal "fair and reasonable".

In one of its resolutions, the board is asking shareholders to approve an immediate off-market equal access buy-back of up to 65 per cent of the issued capital at a 1.75 per cent discount to net tangible assets (NTA).
"As the proposed buy-back price per share is greater than our assessed value of [Premium Investors shares] per share, in our opinion, the buy back is fair when assessed based on the guidelines set out in Regulatory Guide 111," said the report.

"Whilst prima facie therefore we would recommend that [Premium Investors] shareholders vote in favour of the resolution to approve the buy-back, we are not aware of the specific circumstances of individual shareholders."
The general meeting is scheduled to be held in Sydney on 19 August.

This meeting has been organised after concerns, particularly from Dixon Advisory and Superannuation Services on behalf of clients, about the share price which has consistently traded below its asset value.
Company release