Foster's Group Limited (Foster's) today sent notification to shareholders of two amendments to the Company's Dividend Reinvestment Plan ("DRP").
The Rules of the DRP have been amended to remove the 5% discount and to alter the notice period Directors are required to give to shareholders, from three months to one month, to change the Rules of the DRP.
Under the changes to take effect from 5 September 2002, the 5% discount to the "acquisition price" or weighted average market price for fully priced ordinary shares in Foster's in the five trading days up to the record date of the dividend will be removed.
The removal of the discount brings Foster's DRP into line with current market practice. The change will also assist with the Company's capital management while enabling shareholders to continue to acquire shares without brokerage, commission, stamp duty or other transaction costs.
The Rules of the DRP have also been amended to alter the notice period Directors are required to give to shareholders to change the Rules of the DRP. Under the existing rules, Directors are required to give shareholders three months notice of variations to the Rules of the DRP. This requirement has been amended so that Directors now need to give shareholders one month notice of variation to the Rules of the DRP.
Full details of the changes to the DRP have been set out in documentation mailed to shareholders of the company today.
