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| Multiplex to pay $32-million to shareholders  Multiplex agreed an enforceable undertaking (EU) with the Australian Securities and Investments Commission (ASIC), thereby concluding a comprehensive investigation by ASIC into Multiplex's disclosures relating to the Wembley Project between June 2004 and December 2005. In early 2007, Multiplex will make an offer to registered holders of eligible securities enabling them to receive a settlement payment from Multiplex. The $32 million compensation fund will be available to investors who contracted to purchase and held Multiplex shares between February 3 and February 24, 2005.The disclosure issue in question related to the 2 February 2005 meeting of the Multiplex Board, where the Board decided to adjust the profit forecast from the Wembley project from £35.7 million to zero. However, this material change in financial position was not disclosed to the market until 24 February 2005. When the announcement was finally made on 24 February, the Multiplex share price dropped from the 23 February price of $5.57 to $4.76 on the day of the announcement. Multiplex intends to reconstitute the Multiplex Limited board of directors such that it comprises a majority of independent, non-executive directors within 12 months. Consequent upon execution of the EU, the Roberts family has agreed to make an advance payment of the $50 million indemnity payable under the Wembley Undertaking (as released to the market on 8 March 2005). This amount, discounted at the bank bill rate, will be paid by 22 December 2006 rather than by June 2007. Shareholders who are related parties, such as members of the Roberts family, directors of Multiplex and executive staff at the relevant time, are excluded from applying for compensation under this undertaking. write your comments about the article :: © 2006 Construction News :: home page |