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.

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