Telstra 2003 Annual Report Download - page 59

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www.telstra.com.au/investor P.57
The directors are not aware of any matter or circumstance that has
occurred since 30 June 2003 that, in their opinion, has significantly
affected or may significantly affect in future years:
•our operations;
•the results of those operations; or
•the state of our affairs;
other than:
On 28 August 2003, the directors of Telstra Corporation Limited
declared a fully franked final ordinary dividend of 12 cents per
ordinary share, payable on 31 October 2003 to those shareholders on
record on 26 September 2003. A provision for dividend payable has
been raised as at the date of declaration,amounting to $1,544 million.
On 28 August 2003, plans were announced to spend between
$800 million and $1,000 million to buy-back a portion of the Telstra
Entity’s share capital, subject to regulatory approval. The share
buy-back will be an off market buy-back and is the first step of a
capital management program. The financial effect of the buy-back
cannot be reliably estimated as yet.
On 27 August 2003, we entered into an agreement to sell our 22.6%
shareholding in our associated entity IBM Global Services Australia
Limited (IBMGSA), subject to regulatory approvals. Revenue from the
sale of this investment amounted to $154 million resulting in a profit
before income tax expense of $149 million.We also modified a 10 year
contract with IBMGSA to provide information technology services.
This modification will result in an expense of $130 million being
recorded in our fiscal 2004 statement of financial performance and
the removal of $1,596 million of expenditure commitments disclosed
as at 30 June 2003. In fiscal 2004, the net impact on our profit before
income tax expense of this transaction will be $19 million.
On 18 July 2003, we sold our 16.4% remaining interest in Commander
Communications Limited for $24 million.
The financial effect of the above events after balance date have not
been recognised in our statements of financial performance, financial
position or cash flows for the year ending 30 June 2003.
5. Events after balance date