BKI Investment Company Ltd

Transaction Summary

Company Overview

BKI is a listed investment company, which provides a simple and transparent way to invest in a portfolio of ASX listed companies. BKI has a long track record of delivering positive returns to shareholders. The company has a history of paying steadily increasing fully Franked dividends over time and as at 30 April 2018, BKI’s Franked Dividend Yield was 4.9% while the Grossed-Up Dividend Yield was 7.0% (based on the Offer Price of A$1.50 and a tax rate of 30%). All new shares issued under the Offers will rank equally with all ordinary shares of the Company already on issue. Participants in the Offer will be eligible for the final dividend in respect to the 2018 financial year (payable in August 2018).

The Company’s Investment Strategy is based on active equities management that is grounded in research, selecting profitable companies with a history of attractive dividend yields to invest in for the long-term. The Investment Strategy, implemented by Contact, incorporates bottom up stock selection, focusing on the merits of individual companies rather than market and economic trends. The Company aims to generate an increasing income stream

for Shareholders in the form of fully Franked dividends and deliver capital growth through long-term investment in a portfolio of stable assets.

Entitlement Offer: 1 for 15 Non-Renounceable Offer to raise up to A$62.2M at an offer price of A$1.50 per New Share

Shortfall Offer: offer to new and existing shareholders to subscribe for the shortfall of the Entitlement Offer

General Offer: subscribe for New Shares to raise up to A$140M at an Offer Price of A$1.50 to both existing and new shareholders.