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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...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

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.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4349

Categories: Forum & Feedback [1]

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Scrip, DRIP, CRIP

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