Dunelm return of capital to have income & capital options

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.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

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