Havilah Resources Limited (ASX: HAV), an Australian resources company primarily engaged in mineral exploration and development across South Australia, has announced a proposed return of capital to its shareholders. The company plans to distribute its holding in Sandfire Resources Limited (ASX: SFR) via an in-specie distribution of securities. This move, which requires shareholder approval, marks a significant event for Havilah’s investors, aiming to return value to shareholders by distributing shares in another ASX-listed entity.
The distribution will see Havilah shareholders receive approximately one Sandfire ordinary share for every 396 Havilah shares they hold at the record date. This ratio is an estimate based on a Sandfire share price of $20.18, with the final ratio to be determined by Sandfire’s share price on the record date. An estimated total of 891,947 Sandfire shares are expected to be distributed. Fractional entitlements arising from the distribution will be rounded down to the nearest whole number or disregarded. Furthermore, the return of capital will impact unlisted Director options, with their exercise price expected to be reduced by an estimated $0.05085 per option.
Shareholder approval for the capital reduction will be sought via an ordinary resolution at Havilah’s Annual General Meeting scheduled for 17 December 2026. The Notice of Meeting and Explanatory Memorandum detailing the proposal will be released to the ASX on 13 November 2026. Key dates for the proposed distribution include an effective date of 24 December 2026, with trading in Havilah’s re-organised securities on an “ex return of capital” basis commencing on 30 December 2026. The record date for the distribution is set for 31 December 2026, and the distribution of Sandfire shares, along with the sending of holding statements, is slated to begin on 8 January 2027. Havilah is also in the process of obtaining a binding class ruling from the Commissioner of Taxation for the benefit of its shareholders.
