GWA SHAREHOLDERS TO TAP INTO $88.3M
23 April 2015,
GWA Group Limited (ASX:GWA) will return $88.3 million to shareholders after finalising the sale of its businesses, Dux and Brivis.
The building fixtures supplier will pay a return of capital of 22.8 cents per share worth $69.9 million, on top of a partly franked special dividend of six cents per share at $18.4 million.
The capital return is subject to shareholder approval, with a general meeting to be held on May 29.
Shareholders will also vote on GWA's proposal to implement a share consolidation based on the capital return price.
The share consolidation has a conversion ratio of one GWA ordinary share into 0.91, or 100 shares will be consolidated into 91 shares.
The company says the combination of the capital return and the share consolidation aims to provide an earnings per share outcome similar to a share buy-back that is equal to all shareholders.
The share consolidation is expected to "neutralise any expected share price reduction" as a result of the capital return.
If the proposal goes ahead, GWA's ordinary shares on issue will be reduced from about 307 million shares down to 279 million shares.
It follows GWA's announcement to divest Gliderol Garage Doors last week.
The capital return and special dividend will be paid on June 15 if approved by shareholders.