Pinewood Technologies to return £358m to shareholders

5th Apr 2024 13:34

(Sharecast News) - Pinewood Technologies announced a significant return of value to shareholders on Friday, following the disposal of its UK motor and leasing business to Lithia, as it announced on 1 February.

The company, formerly known as Pendragon, published a circular outlining a proposal to return around £358m in cash to shareholders through a special dividend of 24.5p per existing share.

It also proposed a consolidation of its ordinary share capital.

Pending the approval of resolutions by shareholders at a planned general meeting, the company said the dividend was expected to be paid on 7 May to shareholders registered by the end of business on 22 April.

Under the proposed capital reorganisation, one new share would be issued for every 20 existing shares, subject to fractional entitlements.

The firm said the restructuring would reduce the number of ordinary shares held by shareholders, while maintaining the proportion of the company's issued share capital held.

Despite having a different nominal value, the new shares would trade on the London Stock Exchange on par with the existing shares, and carry the same rights under the articles of association.

The general meeting convened for shareholders to approve the relevant resolutions was scheduled for 22 April.

At 1250 BST, shares in Pinewood Technologies Group were down 0.29% at 38.79p.

Reporting by Josh White for Sharecast.com.