Ordinary Shares Certificate Question?

NRex

Hi All,

I'm a little confused on the share certificate that I received a while ago, it states that I hold - Ordinary Shares of 25p each fully paid in Smiths Group Plc (the company name).

So I have, 204 of these Ordinary Shares

Does this mean that my shares are worth?-

204 x 25p

Or

204 x The Current Share price. (1090p)



I know that this is a major difference but I did not return my election form in time which share holders voted on which option that they would prefer, and I was automatically sent a Single Dividend of 365p per share.

So I was I automatically opted for the below:

Shareholders who did not return an election form or failed to complete validly and/or return in time an election form and shareholders in restricted territories automatically receive the Single B Share Dividend
(Which I have received: 204 x 365p)

It also states at the bottom of this dividend:

A certificate for your holding of New Ordinary Shares in Smiths Group PLC is also being despatched to you separately.
(Which I have also received where is states what I mentioned in the first paragraph ....Ordinary Shares of 25p each)

So are these only worth 25p?

My apologies if this is a little confusing but I am totally baffled

Thanks

Neil

Aegis

The 25p bit is largely for accounting purposes, so your shares are worth the current share price.

NRex

Thats v.good news then!

Thankyou for responding so fast

Neil

sabretoothtigger

The shares arent worth anything till you sell them, meanwhile you can estimate and hope the money is good till you decide to collect

Nice dividend though, what exchange are they listed on

NRex

They are listed on the FTSE 100

Biggles

It was a share consolidation and return of capital to shareholders, hence the large dividend and the new share certificate. I imagine you had 306 old shares before the restructuring and got 306 x 365p special dividend.

You could have opted for a capital payment but the dividend was the default option where they didn't receive a reply when they asked what option you chose.

Details of the return of cash:

Subject to shareholder approval and listing of both the B shares and the new
ordinary shares arising on the share consolidation, shareholders will receive
one B share for every existing ordinary share that they hold on 15 June 2007.
Shareholders (other than those in the United States, Canada, Australia and New
Zealand) will be able to elect between the following choices in respect of those
B shares:

• To receive a single dividend of 365 pence per B share for some or all
of their B shares. B shares in respect of which a shareholder has
chosen to receive this single dividend payment will automatically be
converted into deferred shares, which will have negligible value.

• To accept an offer by JPMorgan Cazenove Limited ('JPMorgan Cazenove')
to sell some or all of their B shares to JPMorgan Cazenove (acting as
principal) for 365 pence per B share, free of all dealing expenses and
commissions, on 25 June 2007 (or such later date as the directors of
the Company may decide). Further details of this offer are contained
within the circular.

• To retain some or all of their B shares. It is currently expected that
JPMorgan Cazenove, acting as principal, will make a final purchase
offer to acquire any retained B shares for 365 pence per B share, free
of all dealing expenses and commissions, on or around 17 April 2008,
although there can be no guarantee that such an offer will be made.

The B shares will be admitted to trading on the London Stock Exchange's main
market for listed securities and admitted to the Official List of the UK Listing
Authority and those which are retained will pay a dividend fixed at 75 per cent.
of 12 month LIBOR per annum on 365 pence per B share. Shareholders who do not
elect, or who are not eligible to elect, for any of the B share alternatives
will receive the single dividend of 365 pence per B share on all of their B
shares.

A share consolidation will be undertaken in conjunction with the return of cash.
Existing ordinary shares will be subdivided and consolidated so that
shareholders receive 2 new ordinary shares for every 3 existing ordinary shares
held on 15 June 2007. The intention is that, subject to market movements, the
share price of one new ordinary share immediately after listing should be
approximately equal to the share price of one existing ordinary share
immediately beforehand. The effect of the share consolidation will be to reduce
the number of issued ordinary shares to reflect the return of 365 pence per
ordinary share, but shareholders will own the same proportion of Smiths issued
share capital immediately following the consolidation as they did previously
(subject to fractional entitlements). The ratio used for the share consolidation
has been set by reference to Smiths market capitalisation at close of business
on 14 May 2007.

NRex

Many Thanks for your reply