Hargreaves Lansdown's Explanation12 Apr 2022 21:12
This from HL today via email. It all just seems a waste of every investor's time, leaving some open to CGT at a time they did not choose.
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"Aviva plc wants to pay shareholders some of the proceeds following the disposal of eight non-core businesses.
This will be a one-off payment and is proposed to take place by way of a return of capital. If you hold shares at the close of business on 13 May 2022, you’ll receive a return of capital payment of 101.69p per every Aviva plc share held.
When a company pays a return of capital, it’s normal for the share price to drop by the amount that's returned per share. Aviva wants to keep the share price roughly the same before and after the return of capital. To do this Aviva will reduce the number of shares every shareholder owns. Shareholders will get 76 new shares for every 100 shares held. This won’t make a difference to the overall value of your holding – the total value of your new Aviva plc shares plus the return of capital should be similar to the value of your current holding.
As a shareholder, you can vote for or against these plans. You don’t have to vote, but you can if you wish.
How to vote
To vote, log into your account, select the dark blue icon next to your Aviva plc holding and select the option you require at the bottom of the page. You’ll need to do this by noon Tuesday 3 May 2022 so we can pass your vote onto the company before the meeting.
If plans go ahead, we'll be in touch around 14 May 2022 to inform you of your expected new holding. Your new Aviva plc holding will be updated on 16 May 2022 and the cash will be paid on 19 May 2022."
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