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3 This Information Paper discusses the ABS' proposed treatment of Telstra in ABS statistical outputs following the Telstra 3 share offer. Issues discussed in this paper include the principles of public/private sector classification, the conceptual treatment of the various entities involved in the privatisation, and the date of effect of the privatisation from both a conceptual viewpoint and in terms of presentation in ABS statistics.
4 In October 1997, the Australian Government sold (T1) one third of its equity in Telstra on an instalment payment basis. Investors bought 4.29 billion shares (33% of Telstra) and were issued with a partly paid security known as an 'instalment receipt' evidencing beneficial ownership of an underlying share. Instalment receipts were listed on the Australian Stock Exchange on 17 November 1997.
5 The first instalment was payable at the time of the share offer with the price fixed at $1.95 per share for retail investors and $2.00 per share for institutional investors. The final instalment amount of $1.35 for retail investors and $1.40 for institutional investors was payable on 17 November 1998. The Telstra shares were transferred to the investor following payment of the final instalment.
6 On 21 June 1999, The Telstra (Further Dilution of Public Ownership) Act 1999 was passed in the Senate. This legislation facilitated the sale of up to a further 16.6% of Telstra (T2).
7 Investors bought 2.13 billion shares on an instalment payment basis, under a structure similar to that used in the T1 share offer in 1997. A first instalment was payable on application in November 1999, with the price fixed at $4.50 per share for Australian retail investors and $4.75 for institutional and other investors. The final instalment was payable by 2 November 2000. The final instalment was set at $3.05 per share and was payable by institutional investors and retail investors, although Australian retail investors were entitled to a loyalty discount of $0.15 per share in certain circumstances.
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