Croda (CRDA)
Posted: April 2nd, 2019, 4:24 pm
Apologies if this post is in the wrong board, but it's definitely share news-worthy. I received the following "Corporate Action" notification in my iWeb S&S ISA yesterday:
CRODA INTERNATIONAL PLC - Important Information
Proposed Consolidation.
41 New Croda International PLC (Croda) Ordinary shares for every 42 Existing Ordinary shares held on 29th April 2019, being the Ex-entitlement Date.
And:
Proposed Special Dividend of GBP1.15 per each Existing Croda share held on 29th April 2019, being the Ex-entitlement Date.
In February 2019, Croda announced its intention to pay a Special Dividend of approximately GBP150million, representing GBP1.15 per share.
In conjunction with the proposed Special Dividend, Croda proposes to implement a Consolidation in order to maintain comparability as far as possible, between the Company's share price before and after the payment of the Special Dividend.
The Special Dividend and Consolidation are subject to shareholder approval at the Annual General Meeting to be held on 24th April 2019.
Following such approval, the Consolidation is expected to become effective on 29th April 2019 and the New Croda shares are expected to be credited to your account on or after the same date. Unless you hold your shares in a ShareBuilder account, no fractions of shares will be issued. Any resulting cash entitlements will be dealt with in accordance with our Terms & Conditions.
When a company consolidates its share capital the number of shares in the Company reduces. This will impact the share price as the total value of shares will remain the same but there are fewer shares in circulation, so the price can increase significantly. You may therefore notice an increase in the share price when the Consolidation becomes effective.
If approved by shareholders, the proceeds from the Special Dividend Payment are expected to be credited to your account on or after 30th May 2019. The proceeds will be paid through our usual Dividend procedures.
Should you retain your holding of Croda shares, we will update you in due course upon receipt of any further information from the Company.
Should you wish to find more information about the Special Dividend and Consolidation, please visit https://www.croda.com/en-gb/investors/regulatory-news.
I have followed the link in the above communication, and found nothing of relevance. Could somebody here explain what this is and why it's happening?
I've assumed that this is a "share split", but after googling "croda share split 2019", I'm still none the wiser.
Also given that the proposal is to turn 42 into 41 (higher valued) shares, and I've got only 21 shares, will I likely profit?
thanks Matt
CRODA INTERNATIONAL PLC - Important Information
Proposed Consolidation.
41 New Croda International PLC (Croda) Ordinary shares for every 42 Existing Ordinary shares held on 29th April 2019, being the Ex-entitlement Date.
And:
Proposed Special Dividend of GBP1.15 per each Existing Croda share held on 29th April 2019, being the Ex-entitlement Date.
In February 2019, Croda announced its intention to pay a Special Dividend of approximately GBP150million, representing GBP1.15 per share.
In conjunction with the proposed Special Dividend, Croda proposes to implement a Consolidation in order to maintain comparability as far as possible, between the Company's share price before and after the payment of the Special Dividend.
The Special Dividend and Consolidation are subject to shareholder approval at the Annual General Meeting to be held on 24th April 2019.
Following such approval, the Consolidation is expected to become effective on 29th April 2019 and the New Croda shares are expected to be credited to your account on or after the same date. Unless you hold your shares in a ShareBuilder account, no fractions of shares will be issued. Any resulting cash entitlements will be dealt with in accordance with our Terms & Conditions.
When a company consolidates its share capital the number of shares in the Company reduces. This will impact the share price as the total value of shares will remain the same but there are fewer shares in circulation, so the price can increase significantly. You may therefore notice an increase in the share price when the Consolidation becomes effective.
If approved by shareholders, the proceeds from the Special Dividend Payment are expected to be credited to your account on or after 30th May 2019. The proceeds will be paid through our usual Dividend procedures.
Should you retain your holding of Croda shares, we will update you in due course upon receipt of any further information from the Company.
Should you wish to find more information about the Special Dividend and Consolidation, please visit https://www.croda.com/en-gb/investors/regulatory-news.
I have followed the link in the above communication, and found nothing of relevance. Could somebody here explain what this is and why it's happening?
I've assumed that this is a "share split", but after googling "croda share split 2019", I'm still none the wiser.
Also given that the proposal is to turn 42 into 41 (higher valued) shares, and I've got only 21 shares, will I likely profit?
thanks Matt