Persimmon proposes return of cash to shareholders

FTSE 250-listed house building company Persimmon has issued a circular containing details of a proposed 75p per share return of cash to shareholders worth approximately 227m pounds altogether.

FTSE 250-listed house building company Persimmon has issued a circular containing details of a proposed 75p per share return of cash to shareholders worth approximately 227m pounds altogether.

The proposed 75p per share cash return is the first payment under the group's capital return plan and the circular includes a notice convening a general meeting of the company to be held on the same day as the annual general meeting, on April 18th, to approve the return of cash.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

The group said that it would propose to effect the return of cash through a bonus issue of B Shares and/or C Shares which were intended to enable shareholders to elect to receive their return of cash proceeds as either a return of capital or as dividend income or any combination of the two, subject to applicable overseas restrictions.

Under this proposed return of cash, and subject to shareholder approval being obtained, Persimmon said that for every one existing ordinary share held at 6.00 pm on April 19th 2013, 75p is to be returned to shareholders through the issue to them of either one B Share - which will be redeemed by the company for 75p - or one C Share - on which a dividend of 75p will be paid - after which the C Share will be automatically reclassified as a deferred share and subsequently repurchased by the company for an aggregate consideration of one penny and then cancelled.

Advertisement - Article continues below

The announcement follows an update issued by the company in February 2012 when the company announced a strategy that aimed to return £1.9bn - or £6.20 per share - of surplus capital to shareholders over nine and a half years ending in 2021.

Persimmon's shares were up 1.0% to 962.50p at 13:16 on Monday.




Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020

Most Popular


Stockmarket crash: more to come

The stockmarket crash was hard and sudden – and it might not be over yet. But while the short term outlook is awful, says Merryn Somerset Webb, that d…
23 Mar 2020

Markets are starting to realise just how bad the coronavirus crisis will be

As governments around the world throw everything including the kitchen sink in the fight against coronavirus, markets are reaching the “moment of maxi…
23 Mar 2020

International Consolidated Airlines: a buy for the brave

International Consolidated Airlines, BA’s parent company, is dirt cheap and well placed to recover. Here's how to play it.
23 Mar 2020

Is 2020 the year for European small-cap stocks?

SPONSORED CONTENT - Ollie Beckett, manager of the TR European Growth Trust, on why he believes European small-cap stocks are performing well.
12 Feb 2019