Union Resources Limited
18 March 2008
Union Resources Limited
Non-Marketable Parcels of Shares
On 26 June 2007 the Company advised that it had written to all of the Company's
shareholders having less than a 'marketable parcel' (i.e. less than A$500 worth
by market value) of shares in the Company advising that the Company would
exercise its right to sell their shares if they did not either elect to remain a
shareholder or increase their holding to a marketable parcel.
Below is the full text of an update letter sent to shareholders yesterday:
Sale of Small Shareholding
As you are aware the Company undertook an exercise last year whereby, as a
result of you holding less than A$500 worth of shares in the Company and not
electing to retain your shareholding, the Company appropriated your shares for
sale. You would have subsequently received a holding statement showing a 'nil'
holding balance as a consequence. Technically you remain a shareholder of the
Company until such time as the shares are sold, however you cannot deal in the
shares as they are under the Company's control. The exercise has been carried
out in accordance with the Company's constitution and applicable law.
It is the Company's stated intention to sell your shares and account to you for
the proceeds. Your shares were appropriated by the Company in August 2007. The
Company's Board took the decision at that time to hold off from selling the
shares of all affected shareholders in the hope that the Company's market share
price would increase, thereby ensuring a higher return to affected shareholders.
Unfortunately this has not occurred to date, due in part to the failure, despite
the Company's best endeavours, to obtain a favourable outcome in the ongoing
dispute over the Mehdiabad Project in which the Company is involved in Iran, and
possibly also due to weaker market sentiment in general.
The Company is aware that it would benefit some affected shareholders if their
shares were to be sold this financial year, enabling them to secure a capital
loss which would assist their tax position.
The Company's Board has taken the decision that it will continue to endeavour to
obtain a better sale price for shareholders than the Company's current market
share price, but in any event will sell the shares by no later that 30 June of
this year. The Company's Board regrets the delay taken to date in selling your
shares and accounting to you for the proceeds, but wishes to assure you that it
has been done with your best interests in mind.
UNION RESOURCES LIMITED
Australia: Union Resources Limited
Dr Frank Reid - Managing Director
Phone: +61 07 3833 3833
London: Hanson Westhouse Limited
Bill Staple or Martin Davison
0207 7601 6100
Simon Rothschild / Louise Mason
0207 367 8888
This information is provided by RNS
The company news service from the London Stock Exchange