Tate & Lyle is proposing to reduce its share capital through the cancellation and repayment of its 6½ per cent. cumulative preference shares (the " Preference Shares " and the " Reduction ", respectively). The Reduction will require the approval of Tate & Lyle's shareholders, as well as confirmation by the High Court.
In connection with the Reduction, Tate & Lyle expects to return £1.00 per Preference Share (being the nominal value of, and amount paid-up on, each Preference Share) together with all arrears and/or accruals of the fixed cumulative dividend to the date of the repayment. This amount corresponds with the entitlement of holders of Preference Shares under Tate & Lyle's articles of association. Such amount is expected to include the full accrued entitlement to the 3.25 per cent. dividend on the Preference Shares that is payable on 30 September 2022 to holders of Preference Shares as at the relevant record date.
As at the close of business on 14 June 2022, Tate & Lyle had in issue 2,394,000 Preference Shares. The Preference Shares are considered by the Board to be surplus to Tate & Lyle's requirements. The costs of administering the Preference Shares and maintenance of the register are disproportionate to the value of the Preference Shares as capital of Tate & Lyle and they are also an inefficient form of finance in the current environment.
The Preference Shares are admitted to the premium segment of the Official List and to trading on the London Stock Exchange's main market for listed securities with ISIN number GB0008754466. The terms of the Preference Shares are set out in Tate & Lyle's articles of association.
Expected procedure
As noted above, the Reduction (and certain related matters) is subject to the approval of the holders of Preference Shares and ordinary shares in the capital of Tate & Lyle, jointly by way of special resolution, at a general meeting of Tate & Lyle's shareholders, as well as confirmation by the High Court.
The requisite shareholder approvals are expected to be sought at Tate & Lyle's 2022 annual general meeting. If the requisite resolutions are duly passed by Tate & Lyle's shareholders at such meeting, it will be necessary for an application to be made to the High Court for confirmation of the Reduction in order to implement the cancellation of the Preferences Shares. Assuming that the High Court confirms the Reduction and the Reduction becomes effective, repayment of amounts due to holders would then be made. The listing of the Preference Shares on the London Stock Exchange would also be cancelled.
https://www.investegate.co.uk/tate---38 ... 00028879O/
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