UAE: DP World Shareholders Approve Share Consolidation
DP World Limited has today received shareholder approval to undertake a 1 for 20 share consolidation. The share consolidation will take place prior to the commencement of trading on Thursday 19 May 2011.
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.
Holders of DP World shares prior to the commencement of trading on Thursday 19 May 2011, the „record date‟ will each receive one New Ordinary Share for every 20 existing ordinary shares. Trading in the New Ordinary Shares is expected to commence at market opening 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. There should be no change in value for shareholders as a result of the consolidation and treatment of fractions.
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.
Shares trading on Wednesday 18 May 2011 will settle on a T+1 basis, to ensure these trades have already settled prior to the consolidation. There will be no ex-entitlement trading date prior to this record date as all shares must have settled before the consolidation can be implemented.
Source: dpworld, May 11, 2011;