Why IAB Holdings’ Share Price Surging Means Delisting

Over the last six months, shares of IAB Holdings Inc [ASX:IAB] (formerly Inabox Group Ltd) have been firmly climbing after news the comapny would be seeking to be delisted.

Shares are trading at a 0.50% gain to $1.00 at time of writing.

December has proved very busy, with a string of new announcements which have played a big part in IAB’s increasing share price. One such announcement revealed its dividend distribution dates, and a fully franked special dividend of $0.29 per share.

Speaking of, leading into 2019 it’s important to keep your portfolio up to date. That might mean getting rid of underperforming stocks or adding new ones. That’s why Matt Hibbard recommends you give his newly released 2019 ‘Top Five Dividend Stocks’ report a read to get started. You can read more about it here (for free).

Why IAB holdings share price helped by MNF sale completion

You would have remembered last month when the company first announced that if the MNF transaction was approved by shareholders and completed, they planned to return the company’s surplus cash to shareholders by means of dividends as well as a return of capital.

As you should know, shareholders did approve the MNF transaction at the latest general meeting, taking place on 7 December 2018.

After the transaction was completed, IAB received $34.5 million in cash considerations.

Shareholders should note that the next general meeting is scheduled for Tuesday, 15 January 2019. During this meeting investors will have to consider whether to remove the company from the official list on the ASX…

The delisting will maximise the company’s returns for shareholders by means of capital returns.

Chairman David Rampa recommends that all shareholders vote in resolutions 1 and 2.

Elsewhere, IAB’s CEO said this about MNF’s completion:

It is exciting that our vision will be continued by MNF, led by Rene Sugo and his experienced team. The sale is also a great result for shareholders who I want to thank for their loyal support over the past 5 years, since listing on the ASX. It’s an exciting industry and I am passionate about championing the small guy to drive innovation and competition.

After payment of the special dividend, IAB is looking to distribute its remaining surplus cash — estimated to be at least 61 cents per share — via one or more capital shares, as reported in the ASX annulment on 12 December.

The company is seeking approval from shareholders in the general meeting to delist from the ASX.

WhyIAB holdings is up in the air for 2019

IAB’s future is in the hands of its shareholders…

It’s too soon to say what way investors will swing in the next general meeting, but it’s not unlikely given the result of the first vote — handing over the sale to MNF Transaction — that shareholders could vote to delist.

Regardless, more information about the resolution is expected at the next Notice of Meeting.

Stay tuned.


Ryan Clarkson-Ledward,
For Money Morning

PS: In this just released report, Matt Hibbard shows you his top five dividend picks for 2019. Click here to claim your free copy today.

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

To find out more about the publications Ryan works on and how you can subscribe, please click on the corresponding link here:

Money Morning Australia