25th Jan 2021 09:38
(Alliance News) - Tesco PLC on Monday said it plans to return GBP4.99 billion to shareholders through a special dividend after disposing of its shareholding in Tesco Stores (Thailand) Ltd and Tesco Stores (Malaysia) Sdn Bhd.
Supermarket chain Tesco received GBP7.8 billion of net funds from the disposals and made a GBP2.5 billion pension contribution to its pension scheme.
A further GBP4.99 billion is to be paid as a special dividend, amounting to 50.93 pence per share, subject to shareholder approval and a share consolidation on the basis of 15 new shares for every 19 existing shares.
This consolidation will reduce the number of existing ordinary share in issue by around the same proportion of market capitalisation returned through the special dividend, keeping the market price of Tesco shares at a broadly similar level once the dividend payment and share consolidation are complete.
A general meeting to approve the dividend and consolidation will take place on February 11. The minimum quorum of shareholders will be present, in line with Covid-19 guidance. Voting by proxy is encouraged.
Tesco will also seek shareholder approval to renew its annual authorities to make market purchases of its own shares, allot new shares, and disapply pre-emption rights.
Shares in Tesco were down 0.1% at 241.55p in London on Monday morning.
By Anna Farley; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Tesco