7th Jan 2021 09:51
(Alliance News) - Cairn Energy PLC on Thursday announced the ratio for its share consolidation and the date of its proposed special dividend.
The oil and gas exploration and development company back on December 17 had said it was intending to pay a 32 pence per share special dividend, returning around USD250 million to shareholders.
On Thursday, the FTSE 250 firm said payment of this dividend will take place on January 25.
Cairn in December also announced plans for a consolidation of its ordinary share capital. The consolidation ratio for this will be 11 new shares for every 13 existing shares. The new shares are to be listed Monday next week.
The company said: "The share consolidation will reduce the number of Cairn's issued ordinary shares by an amount that reflects the value of the return of cash to shareholders relative to the market capitalisation of Cairn prior to the return of cash.
"The aim of this is to ensure, so far as possible, the market price of an ordinary share remains approximately the same before and after the proposed return of cash and to maintain comparability of historical and future per share data."
Shares in Cairn were down 1.1% at 209.87 pence in London on Thursday morning.
By Anna Farley; [email protected]
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