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.

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.

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.

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.

MF