Telecom applies to court for capital return approval

Telecom said it would today file documents at the High Court in relation to its planned $1.1 billion capital return to shareholders.

The return is by way of a court- and shareholder-approved scheme of arrangement.

Telecom is seeking interim orders, and if they are granted, would hold a special meeting in mid-August for shareholders to approve the return.

The scheme of arrangement would cancel one in nine ordinary shares on a pro-rata basis in exchange for $4.88 for each cancelled share.

It is anticipated that the capital return will be completed in October.

Telecom shares were down 11c to $4.61 in mid-afternoon trading today.

- NZPA