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likely to be paid in Feb 2021 and sale completed approx 18th dec 2020. All good news for shareholders. Anyone know what the share consolidation is about?
Consolidation just refers to the start of a share buy back program and/or the cancelling of shares held in treasury...all good.
The consolidation means after the special div, let's say the share price falls 40p,{for example) what will happen is the consolidation will say take your 100 shares, consolidate to say 75, all of which have a sp similar to before the special div, kind of feels like "vanity" on the part of the companies that do it as they don't want to see a share price like 178p,
Great we have a date. Now to see how this will affect the share price given that I'm sure Tesco intend to keep the regular dividends at the same level.
Have we had previous indications to the consolidation that was mentioned. So we’re do we see this going before the 18th then plus 30p maybe.
It doesn't feel like a special dividend if we are to get a reduction in the number of shares that we have, I fully understand that when a company pays a dividend, that money is deducted from the share price on the ex dividend date, I don't see where we are getting the extra money from if they take say 25% of our shares from us. I would have thought that anything extra should not effect the SP.
The Asia sale money is already priced into the share price it seems, we have it already, but maybe we see a small rise over the next few weeks
22% div. I do hope see an extra 10p on top of the current share price though
22% div. I do hope see an extra 10p on top of the current share price though
Great news. You could use the special dividend to buy more shares at the adjusted price. If the yield remains the same then this is a great income share.
Im surprised this is considered priced in? a 50p dividend has been mentioned that would make the true price roughly 175 which seems too low?
How can it be priced in if the special dividend has to be voted on by shareholders?
As previously announced, Tesco intends to return c. £5 billion of the net proceeds to shareholders via a special dividend, together with a share consolidation, and will also make a significant pension contribution of £2.5 billion to the Tesco PLC Pension Scheme shortly following completion. The special dividend is expected to be paid on or around 26 February 2021, conditional on obtaining shareholder approval at a general meeting which is expected to be held on or around 11 February 2021 (the "General Meeting").
Todays RNS
A circular containing further details of the special dividend and share consolidation, as well as a notice convening the General Meeting and further details about the resolutions to be considered at the General Meeting, will be sent to Tesco shareholders on or around 25 January 2021.
Hey Jiffy I'd say it has to be priced in, or let's say 90% prices in. Chances of shareholder approval are incredibly high and the market knows it. What was the must be the value of the Asia sale on a pe ratio type basis? Must be similar to the price they achieved. Not to mention they are plugging 2.5b pensions, handing back 0.6b to borat and cronies
Deemed fair value. I think we'll see some sp appreciation from here, but not much
The share dividend, the share consolidation and shareholder approval was stated very clearly in the original circular and I have raised the issue here several times so that newbies were aware of this. Some posters were fixated on the special dividend and overlooked the accompanying consolidation.
Expect or hope the dividend gets adjusted accordingly to represent the consolidation.
Lead
It won't be adjusted. The original circular said £5 billion for shareholders AND the consolidation. Consolidation is not an afterthought, it has always been there
Rosewall
Tbh not a problem the share consolidation as I am building a position here over the next few months. Bought my first tranche last week. Happy for the sp at these levels and even happier to use any SD payment for that purpose.
Leas
Agreed. An easy way to grow that position. The reduction in the pension burden is welcome too
Rosewall
Absolutely. My understanding is that the pension deficit will be well below £1b with the pension finance costs falling and hopefully a continued rise in assets. Hopefully all the employees in the scheme are made aware of this if only to reassure them of their future. Can only be good for morale.
Maybe a strong case for an increase in dividends payments going forward but anything above 4% in these uncertain times is good for investors.