Rexam: early conversion of preference shares

Global consumer packaging company Rexam, has sent a circular to all its shareholders regarding a proposal to convert all the 7.75p Convertible Cumulative Preference Shares of 1284/7p each (Preference …

Global consumer packaging company Rexam, has sent a circular to all its shareholders regarding a proposal to convert all the 7.75p Convertible Cumulative Preference Shares of 1284/7p each (Preference Shares) into fully paid New Ordinary Shares of 642/7p each (New Ordinary Shares), and the consequential cancellation of the listing of all the outstanding Preference Shares with effect from the date on which dealings are expected to commence in the New Ordinary Shares which is at 8.00 a.m. on 16 October 2006. The circular also information regarding an Extraordinary General Meeting of Ordinary and Preference Shareholders as well as notice of a separate Class Meeting of Preference Shareholders at 4.00 p.m. and 4.15 p.m. respectively on 5 October 2006. If the Shareholders approve the proposal, the maximum number of New Ordinary Shares that will be issued will be approximately 26 million. There will be a reduction of net borrowings of GBP 70 million and a corresponding increase in total equity as a consequence of the conversion. An exceptional charge of approximately GBP 9 million would be recorded in 2006 at the maximum conversion rate.