Vodafone

gasmanmartin

Received this during the week from Equinity, they say the default choice is the Income option. So my question is, is there any benefit to chosing the Capital option? I am not looking to sell any, i'm keeping for the long term.

SCHEME OF ARRANGEMENT
The Company has announced a Return of Capital to be effected partly by
the payment of USD23.886 Billion in cash by Vodafone and partly by the
issue of Verizon Consideration Shares. The exact amount to be returned to
Shareholders will depend on a number of factors including the market
value of the Verizon Shares on the Scheme Effective Date, this being 21
February 2014.Under the Scheme, all Shareholders on the Register as at
20 February 2014 will be issued fully paid Bonus Shares. Each
Shareholder may elect for either:
CAPITAL OPTION - One B Share for every 1 Ordinary Share held (may be
subject to scaling), Or INCOME OPTION - One C Share for every 1
Ordinary Share held.
The B Shares are expected to be cancelled by Vodafone in return for cash
and Verizon Shares with a value no greater than the aggregate Nominal
Value of the B Shares. Holders of the C Shares are expected to receive the
Special Dividend, consisting of Cash and Verizon Shares with an aggregate
value equal to that receivable on the cancellation of each B Share under
the Capital Option.
Shareholders who do not make a valid election will be deemed to have
elected to receive the Income Option in respect of all their Ordinary
Shares. If you wish to elect for the Capital Option or a combination of
Capital and Income, please notify us in writing by secure message or
letter, stating which option(s) you wish to elect for, no later than 5pm on
6 February 2014.
Please note that the above information only provides summary details of
this corporate action. It is your responsibility to ensure that you are
familiar with all the terms of the Offer produced by the Issuer Company and understand how this will impact you if you do or do not take action.
Please ensure that you have read and understood the prospectus
produced by the Company which can be accessed at https://www.vodafone.com.
If you are in any doubt you should consult a professional adviser.


Thanks for reading

barak

gasmanmartin wrote: »

Received this during the week from Equinity, they say the default choice is the Income option. So my question is, is there any benefit to choosing the Capital option?.....

I would suggest - probably only if you are a higher-rate tax-payer as it won't then be taxed as income.