13th May 2014 07:06
LONDON (Alliance News) - Rexam PLC said Tuesday that it is set to return approximately GBP450 million to shareholders, following completion of the sale of its Pharmaceutical Devices and Prescription Retail Packaging divisions of its Healthcare packaging business.
The beverage can maker said shareholders are to receive 57 pence per existing ordinary share, equating to an aggregate return of approximately GBP450 million.
The announcement follows Rexam's completion of the sale of its Pharmaceutical Devices and Prescription Retail Packaging divisions of its Healthcare packaging business May 6, 2014.
The firm said the shareholder returns will be implemented by way of a B/C Share Scheme which, as with Rexam's previous return of cash in 2013, is intended to provide shareholders with a choice to receive the cash either as capital or as income, or as a combination of the two. If the capital option is selected, shareholders will also have a choice as to the timing of the return, said Rexam.
The company also set an eight-for-nine share consolidation of the existing ordinary shares into new ordinary shares. A circular is set to be posted to shareholders shortly to approve the return, and a general meeting has been convened for May 29, 2014, said the firm.
Rexam said that the record date for the 2013 final dividend was May 9, 2014, with this dividend to be calculated on the number of ordinary shares owned on this date.
Earlier this month the company said its overall results for 2014 so far had been in line with expectations, despite mixed trading across its regions; the company said volumes of its standard and speciality cans were "quiet" at start to the year in Western Europe, but it saw volume growth in Russia.
Shares in Rexam were trading marginally higher Tuesday morning, up 0.30% at 504 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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