Business
Proposed Return of Capital
Proposed Return of Capital.
About this update from Westmount Energy Limited
[{"type":"text","content":"\n RNS Number : 5698Y Westmount Energy Limited 24 December 2010 \n \n\nWestmount Energy Limited\n('Westmount' or the 'Company')\n \nProposed return of capital of up to approximately £3.4 million to shareholders by way of issue and redemption of redeemable B Shares\n \nHighlights\n \n· Proposed Return of Capital of up to approximately £3.4 million to Shareholders\n· Return equivalent to 45 pence per Ordinary Share\n· Return to be effected by the issue of redeemable B shares\n· For every Ordinary Share held at 5.00 p.m. on 31 January 2011, Shareholders will receive 1 B share\n· Shareholders will have their B Shares redeemed for 45 pence each in cash on 2 February 2011\n· Return is conditional on Shareholders' approval, which will be sought at an EGM on 28 January 2011\n· A circular detailing the Proposals is today being posted on the Company's website and will be sent to Shareholders in due course\n \n'In accordance with stated strategy, the Company intends to return 45 pence per Ordinary Share (up to approximately £3.4 million in aggregate) to Shareholders. The Board continues to monitor its remaining investments to ensure they continue to be attractive to Shareholders.' commented Mervyn Bradlow, non-executive Chairman of Westmount.\n \nBackground to and reasons for the Proposed Return of Capital\nAs referred to in the Company's Annual Report and Financial Statements for the year ended 30 June 2010, dated 4 October 2010, it remains the Board's intention to realise value from its investments and to return surplus cash to Shareholders. Since the Company was introduced to AIM in 1995 at a price of 15p per share, the Directors have concentrated their efforts in securing capital growth for shareholders and have so far returned to shareholders a total of 115 pence per share, which amount will increase to 160 pence per share following the EGM assuming that all of the resolutions are passed at the meeting.\nAs announced previously, it has always been the Directors' intention to return capital to Shareholders when major assets are realised upon sale for cash.\nFollowing the disposal o...