18th Feb 2014 08:28
LONDON (Alliance News) - IMI PLC shares rose for a second day Tuesday, after it followed up Monday's share consolidation with the return of cash to shareholders through payment of a C share dividend and redemption of B shares.
The moves are a result of its decision to return GBP620 million in cash to shareholders from the proceeds of the sale of its beverage dispensing business.
The return was structured as a so-called "B and C share" scheme, which allows shareholders to elect to receive their cash proceeds as an immediate income payment, an immediate capital payment, a deferred capital payment or any combination of the three.
Monday it had confirmed the share consolidation it had previously announced had now taken effect, with every eight existing shares of 25 pence each consolidated into seven new shares of 28 4/7 pence each.
At that time, IMI said 81.4 million B Shares of 200 pence each and 228.7 million C Shares of 0.001 pence each were allotted and issued.
Tuesday, the company said it will pay a 200 pence a C share dividend, and will redeem 75.9 million B shares at the same price. The other 5.5 million B shares it issued were under a deferred capital option, and will remain in issue.
IMI shares were up 0.8% at 1,542 pence Tuesday morning, one of the top gainers on the FTSE 100.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
IMI