STOCK EXCHANGE ANNOUNCEMENT
September 28, 2011Demerger tax ruling for United States shareholders
Telecom is pleased to announce that it has received a private letter ruling from the United States Internal Revenue Service to the effect that the Demerger will qualify as a tax-free distribution to US holders of Telecom shares or Telecom American Depositary Shares for US federal income tax purposes subject to the various qualifications set out in the attached statement.
Further details of this ruling are set out in that attached statement which should be read carefully. This statement updates section 12.4 of the Scheme Booklet which was published on 13 September 2011, prior to the receipt of the private letter ruling.
- ends –Contact:
For media queries, please contact: Ian Bonnar
Corporate Communications Manager
+64 (0) 27 215 7564
For investor enquiries, contact: Mark Laing
GM Capital Markets
+64 (0) 27 227 5890Private Letter Ruling Received from United States Internal Revenue Service
Telecom has received a private letter ruling from the United States Internal Revenue Service (the “IRS”) to the effect that the Demerger will qualify as a tax-free distribution to US holders (as defined in the Scheme Booklet, dated September 13, 2010, relating to the Demerger) of Telecom shares or Telecom American Depositary Shares (“ADSs”), for US federal income tax purposes, under Section 355 of the Internal Revenue Code of 1986, as amended (the “US Tax Code”). The private letter ruling provides that, for US federal income tax purposes: