RE: Special Dividend19 Mar 2022 16:09
Could someone please explain to me what the benefit of the Capital return and Share Consolidation is for us as shareholders? It all sounds a bit of a financial engineering con to me.
For example, if we hold 20,000 shares. They return £20,000 in cash (@£1 a share). At the same time our holding is reduced by 5,000 shares (to 15,000 shares). In fact as things stand, our holding would be worth £21,000 less. To get back to our original portfolio weightage, we would need to buy back 5,000 shares @ £4.22 (for a consideration of £21,000).
If I wanted to raise £20,000, I could simply sell (just under) 5,000 shares. Or am I missing something obvious here?
Any answers would be much appreciated, with thanks in advance.