Bedding, curtains and blinds retailer Dunelm said its proposed return of capital to shareholders will be done in such a way so as to satisfy shareholders who want income and those who want capital.
The group intends to return around £65.8m of capital to shareholders, equivalent to 32.5p per ordinary share, by issuing two types of shares to shareholders, on a one-for-one basis.
Shareholders who (presumably) for tax purposes would prefer income should opt to receive B shares, while those who prefer capital should opt for C shares.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The B shares will pay a one-off dividend of 32.5p each, while the C shares will be purchased for 32.5p each by UBS, with no dealing expenses. UBS will then sell the shares back to Dunelm.
The B shares will be automatically converted into deferred shares once the dividend has been paid, and ultimately will be repurchased byy Dunelm, through UBS, for a penny a pop.
JH
