17th Feb 2014 11:51
LONDON (Alliance News) - IMI PLC shares rose sharply Monday after it consolidated its share capital, part of a return of GBP620 million in cash to shareholders from the proceeds of the sale of its beverage dispensing business.
The engineering firm confirmed the 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.
IMI is returning 200 pence a share in its capital to shareholders.
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
Following the consolidation, IMI has 285.6 million shares of 28 4/7 pence each in issue.
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. These shares are now listed.
IMI announced October 16 that it would return GBP620 million to shareholders and top up its UK pension scheme after selling its beverage dispense and merchandising business for USD1.1 billion, a sale that left it focused on its industrial flow control products. The sale was completed last month.
The stock was trading at 1,534.50 pence Monday, up 227.50 pence or 17.4%, as a result of the consolidation.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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