On 16 April 1999 Tabcorp announced its intention to takeover Star City Holdings Limited, the owner and operator of the Star City hotel and casino complex in Sydney.

During the takeover, Tabcorp achieved a 50% interest in Star City on 14 October 1999 through the accumulated interests of Star City ordinary shares and Star City preferred ordinary shares.

On 1 November 1999 Tabcorp announced that it was proceeding to compulsorily acquire all of the outstanding shares in Star City.


Takeover Offer

The Offer was amended during negotiations and settled on:
  - 1 Tabcorp share and $1.97 for each parcel of 8 Star City preferred ordinary shares
  - 1 Tabcorp share and $1.09 for each parcel of 8 Star City ordinary shares

The difference in the cash component between the two classes of shares reflected the dividend entitlement of the preferred ordinary shares over the ordinary shares.


Claiming Takeover Entitlements

Those shareholders who did not participate in the Offer had their Star City shares acquired compulsorily on 9 December 1999. These dissenting shareholders were entitled to the same consideration as other shareholders.

Pursuant to the Corporations Act 2001, Tabcorp remitted all unclaimed takeover proceeds to the Australian Securities and Investment Commission (ASIC).

Former Star City shareholders who wish to claim their entitlements from the takeover can:
  - Search ASIC’s on-line unclaimed monies register at www.edge.asic.gov.au/unclaimed/simplequery.html; or
  - Contact the ASIC Unclaimed Monies Unit by phone on 1300 301 198 (within Australia)  to make a claim.


Star City Employee Shareholders

Star City employees who had Star City shares through employee share plans participated in Tabcorp Offer in the same manner as other holders of Star City shares. Employees who had their Star City shares compulsorily acquired can contact the ASIC Unclaimed Monies Unit to claim their takeover consideration (refer to the details above).



Foreign Shareholders and Odd Lot Shareholders

A shareholder who was determined to be a "Foreign Shareholder" or an “Odd Lot Shareholder”, as described under Part 2, Clauses 6 and 13 of the Tabcorp Offer Document, had their Tabcorp share entitlement issued to a nominee company which sold these Tabcorp shares on market with the average “Net Proceeds of Sale” paid to the shareholder in addition to the any cash component payable under the Offer.


Tax Issues

Following the completion of the takeover, Tabcorp sent letters to all former Star City shareholders explaining the capital gains tax implications of the transaction, including the determination of the cost base of the new Tabcorp shares.

There were three separate letters sent to preferred ordinary shareholders who had their Tabcorp shares allotted at different intervals, being:
  - For Tabcorp shares allotted on 28 October 1999;
  - For Tabcorp shares allotted on 10 November 1999; and
  - For Tabcorp shares allotted on 9 December 1999, including those allotted from compulsory acquisition.

These letters can be downloaded from links at the bottom of this page.


Initial Public Offer

Under a prospectus dated 12 May 1995 the public and institutions acquired Star City preferred ordinary shares at $1.28 each. The Star City shares were first quoted on the Australian Stock Exchange on 28 June 1995 under the ASX code “SCY”.


Dividend Payments

The holders of Star City preferred ordinary shares had the right to receive a cumulative preference dividend of $0.05 per share for each of the three years ending 30 June 1997, 1998 and 1999. The shareholders of Star City approved the payment of an unfranked dividend of $0.04 per Star City preferred ordinary share on 28 April 1999. The remaining preferred dividend of $0.11 per Star City preferred ordinary share was satisfied by the payment of $0.88 per Tabcorp share under the Offer to Star City preferred ordinary shareholders, which is equivalent to the difference in the cash component offered between the Star City preferred ordinary shares and the Star City ordinary shares.

Former Star City shareholders wishing to claim any Star City dividends to which they may be entitled should contact the ASIC Unclaimed Monies Unit (refer to the details above).


Enquiries

If you were a former Star City shareholder and have any questions regarding your takeover entitlements please contact Tabcorp's share registry.