IMI announces details of cash return, share consolidation

21st Jan 2014 07:14

Shareholders at engineering and fluid control firm IMI are in for a collective windfall of 620m pounds, as the company returns cash following the disposal of its Beverage Dispense and Merchandising divisions.The news should not come as a surprise to investors after the company previously indicated that it would return part of the proceeds of the $1.1bn sale after it was completed on January 2nd.IMI said on Tuesday morning that it intends to return 200p a share to shareholders on register by February 14th, amounting to £620m in aggregate.They will have the option to receive their proceeds as: an immediate income payment; an immediate capital payment; a deferred capital payment; or any combination of the above.This will be accompanied by a share capital consolidation in an attempt to maintain the market price of IMI's shares at the same level as before the cash return. As such, shareholders will receive seven new shares in substation for every eight existing shares held.The firm said: "The board considers the return of cash and the share capital consolidation to be in the best interests of the company and its shareholders taken as a whole. "Accordingly, the board unanimously recommends shareholders to vote in favour of the resolutions to be proposed at the general meeting."BC