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Splitting shares

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17 April 2012

Issue: 4349 / Categories: Forum & Feedback

A company share reorganisation is causing some confusion. Ordinary shares have been replaced with new ordinary and B shares and the latter may be repurchased by the company shortly after issue or later

How companies arrange their dividends was examined by Mike Thexton in Scrip DRIP CRIP. I have come across a variation which was not covered there and I am not sure how to deal with it.

Aggreko plc reorganised its share capital in July 2011: a holder of 32 ordinary 20p shares received 31 new ordinary shares each with a nominal value of 13 p and 32 unlisted B shares.

There was a choice: the B shares could be purchased by the company for 55p on 11 July 2011 presumably triggering a capital gain; or the holder could elect to receive a 55p special dividend on 19 July following which the Bs would become worthless deferred shares; or the holder could retain the B shares until 2012 whereupon there would be an expectation of a later buy-back at 55p together with a...

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Splitting shares

© Copyright LexisNexis 2024. All rights reserved.

17 April 2012

A company share reorganisation is causing some confusion. Ordinary shares have been replaced with new ordinary and B shares and the latter may be repurchased by the company shortly after issue or later

How companies arrange their dividends was examined by Mike Thexton in Scrip DRIP CRIP. I have come across a variation which was not covered there and I am not sure how to deal with it.

Aggreko plc reorganised its share capital in July 2011: a holder of 32 ordinary 20p shares received 31 new ordinary shares each with a nominal value of 13 p and 32 unlisted B shares.

There was a choice: the B shares could be purchased by the company for 55p on 11 July 2011 presumably triggering a capital gain; or the holder could elect to receive a 55p special dividend on 19 July following which the Bs would become worthless deferred shares; or the holder could retain the B shares until 2012 whereupon there would be an expectation of a later buy-back at 55p together with a...

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Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Issue:

4349

Categories: Forum & Feedback [1]

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