pounds 152m payout plan by Reckitt & Colman
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Reckitt & Colman will return pounds 152m to its shareholders via a special dividend and share consolidation, less than two years after the Harpic, Lysol and Dettol household products group tapped shareholders for pounds 230m to part-fund the pounds 1bn acquisition of its American rival L&F, writes Tom Stevenson.
The return of funds was welcomed by the market which pushed Reckitt's shares 13p higher to 726p as analysts anticipated enhanced earnings per share. Shareholders will receive 35.65p per share in return for the consolidation of every 20 shares they currently own into 19 new shares.
The proposals are unaffected by the Chancellor, Ken Clarke's, recent clampdown on special dividends and buy-backs because the payout is to be made in the form of a foreign income dividend (FID) which is paid gross and does not attract advanced corporation tax. Because Reckitt earns more than 90 per cent of its profits overseas it also plans to pay part of future ordinary dividends in the form of Fids.The payback reflects strong cash flow.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments