iBasis Completes Transaction With Royal KPN N.V.
October 1, 2007 12:18 p.m.
Company Announces Payment Date, Per-share Amount, and Tax Treatment of $113 Million Dividend
BURLINGTON, MASS.--(BUSINESS WIRE)--October 01, 2007-- iBasis, Inc. (NASDAQ: IBAS), the global VoIP company(TM), today announced that its transaction with Royal KPN N.V., the national carrier of the Netherlands, which results in the effective merger of KPN's international wholesale voice business into iBasis, has been completed.
As a result of the transaction, iBasis has received the KPN Global Carrier Services business unit and $55 million in cash from KPN in exchange for 40,121,074 of its common stock, which makes KPN a 51 percent shareholder on a fully diluted basis. On Monday, October 8, 2007 iBasis will pay a dividend in the aggregate amount of $113 million to its stockholders of record as of the close of business on September 28, 2007. The per-share dividend amount is $3.28, and the ex-dividend date is Tuesday October 9, 2007.
The Company has determined, based upon its best reasonable estimate, that its current and accumulated earnings and profits, as determined for U.S. federal income tax purposes, if any, will not exceed five percent (5%) of the Dividend amount. In general, subject to the exceptions and additional detail provided in its proxy statement dated August 23, 2007 on file with the SEC, the Company anticipates that not more than 5% of each shareholder's pro rata share of the Dividend will be includable in the shareholder's income as ordinary income dividends. After the end of the year, each U.S. shareholder, and certain non-U.S. shareholders, will be issued the appropriate IRS information return with important tax information, including what portion of the shareholder's pro rata share of the Dividend is to be treated as a taxable dividend, qualified dividend or non-dividend distribution, and the amount of any withholding deducted from a shareholder's distribution. Each shareholder is encouraged to consult his, her or its tax advisor as to the tax consequences of the Dividend. |
