United Utilities return of capital to shareholders

cheerfulcat

A return of capital does just what the term implies - it moves capital back to the shareholders from the company, in this case from the sale of a business. The alternative would have been to keep the cash in the company. There is no new money involved, so you aren't getting anything " extra ", just your portion of the sale proceeds.

There is a Wikipedia article which may explain things more clearly.

Flatlander_2

I've just received a new share certificate and a cheque for £5 from UU.

It says that my 80 x £1 shares have been turned into 61 x 5p shares. Looks to me like I've just been ripped off £71.95...

:huh:

cheerfulcat

Flatlander wrote: »

I've just received a new share certificate and a cheque for £5 from UU.

It says that my 80 x £1 shares have been turned into 61 x 5p shares. Looks to me like I've just been ripped off £71.95...

:huh:

No. You had 80 shares, now you have 61 shares in a slightly smaller company, a cheque for the odd shares left over after the consolidation and a payout of roughly £136. The share price stands at 712 pence.

Flatlander_2

cheerfulcat wrote: »

No. You had 80 shares, now you have 61 shares in a slightly smaller company, a cheque for the odd shares left over after the consolidation and a payout of roughly £136. The share price stands at 712 pence.

Really? When will I get my £136??

cheerfulcat

You should have got it in this morning's post. If you hold the shares in a nominee account the money may take a few days to show in the account.

Edit: that's assuming you went for option 1 or 2.

catz1ct

Is the share price any higher compared to before?