Cannot Believe3 Mar 2022 03:01
what I have been reading and the lack of understanding of something very simple- the simplest explanation that I found that I will re post was -
Tamano29
Posts: 3
Price: 409.80
No Opinion
RE: This is new for me..Wed 14:05
''I see it like this....if price is 400, then after 100p capital return, price will open at 300p. There will then be share consolidation 3 for 4. This will give each share a 400p value again. Everyone will own same % of company but company market value will drop by that 100p per share payout(3.75B). If you buy back shares with your payout then you will increase your number of shares back to what you originally had but own a larger % of remaining company''
I haven't looked into the timings buy I imagine the consolidation will be made on the same day as 'x the return' thereby not seeing the 300p.
Consolidation ratio to be determined next month.
Shareholders are simply getting some of their capital investment back hence 'a capital return' from the proceeds of asset sales. It is a return via the sale of 'B' shares not via a dividend payment.
Share price pre and post return and consolidation, as always will be determined by the market.