UAE: DP World Board Proposes 1 for 20 Share Consolidation
The Board of DP World Limited intends to seek shareholder approval at the Annual General Meeting on 11 May 2011 to undertake a 1 for 20 share consolidation. The free float will remain at 19.55%. The Board believes that undertaking a 1 for 20 share consolidation will better position DP World’s share price alongside global companies with an earnings per share ratio that better reflects the value of the company.
Subject to shareholder approval at the AGM on 11 May 2011, holders of the Company’s shares at the commencement of trading on Thursday 19 May 2011 will each receive one New Ordinary Share of $2.00 for every 20 existing ordinary shares of $0.10 each. Trading in the New Ordinary Shares of $2.00 is expected to commence on Thursday 19 May 2011.
It is anticipated that the share price on Thursday 19 May will be approximately 20 times the level of the previous night’s close to adjust for the reduction in the number of shares in issue, which will reduce from approximately 16.6 billion shares to approximately 830 million shares.
It is the Board’s intention that upon consolidation, fractional entitlements will be pooled and sold in the market with, where practicable, all proceeds being returned to shareholders in the same way dividends are distributed via NIN accounts, Nasdaq Dubai members, custodians and brokers.
Source: dpworld, April 6, 2011;