Cairn Update on proposed special dividend
On 17 December 2020 Cairn announced details of a proposed special dividend of 32 pence per eligible ordinary share, amounting to a return of approximately US$250m to shareholders and a consolidation of Cairn’s ordinary share capital.
The consolidation ratio for the Share Consolidation will be 11 New Ordinary Shares for every 13 Existing Ordinary Shares held at the Record Time. The nominal value of the New Ordinary Shares will be 21/13 pence per New Ordinary Share.
The Share Consolidation will reduce the number of Cairn’s issued ordinary shares by an amount that reflects the value of the Return of Cash to Shareholders relative to the market capitalisation of Cairn prior to the Return of Cash. The aim of this is to ensure, so far as possible, the market price of an ordinary share remains approximately the same before and after the Proposed Return of Cash and to maintain comparability of historical and future per share data.
The Share Consolidation will reduce the number of ordinary shares in Cairn which shareholders own, but not the proportion (subject to allowance for fractional entitlements).
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