Vistry to issue £60m of shares in lieu of dividend

(Sharecast News) - Vistry said it would issue shares valued at £60m to shareholders in lieu of a dividend that it postponed to conserve cash during the Covid-19 crisis.
The housebuilder, formerly known as Bovis Homes, said instead of paying a second interim dividend it would issue 4.37m shares to investors on the share register on 27 December.

Qualifying shareholders will receive 0.02945974 bonus issue share for each existing share. The bonus issue is valued at £60m based on the £13.73 closing share price on 27 December. It is in line with plans already set out by the company.

Vistry said it expected to capitalise £2.18m from retained profits to pay up the shares in full. The new shares are scheduled for admission on the main market on 15 July subject to the plan's approval by shareholders at a meeting the day before.

"The bonus issue shares will be issued to qualifying shareholders in lieu of the expected second interim dividend," Vistry said.

The FTSE 250 company said on 20 May its performance during the Covid-19 lockdown was better than expected in terms of reservations, completions and cash management.