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(Alliance News) - Martin Sorrell's S4 Capital PLC on Monday updated on developments of its bonus issue and capital reduction.
The London-based advertising agency was started and led by Sorrell, the former chief executive of FTSE 100-listed rival WPP PLC.
Following the passing of relevant resolutions at its annual general meeting in June, S4 shared the details of its bonus issue. The firm said the final court hearing over the conversion of its GBP205.7 million merger reserve into a distributable reserve will take place on Tuesday.
On Monday evening, there will be a bonus issue of C ordinary shares, each a capital reduction share. One capital reduction share will be issued for each ordinary share of 25 pence in issue at 1800 BST on Monday.
These shares will not be admitted to any regulated trading market, with S4 expecting the court to confirm their cancellation on Tuesday.
"The board does not intend to declare an interim dividend at this time, although it continues to review the advisability of declaring a modest dividend in future," S4 said.
The company will update on the outcome of the hearing on Tuesday.
Shares in S4 were up 0.9% to 144.47 pence on Monday morning in London.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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