(RTTNews) – Travis Perkins plc (TPK.L) said that condition to plumbing & Heating distribution business disposal has now been satisfied and completion is expected to occur on or around 30 September 2021. Travis Perkins will distribute the net proceeds of P&H Disposal to shareholders through a combination of a special dividend and a share buyback program.
On 20 May 2021, Travis Perkins had agreed to sell its Plumbing & Heating distribution business to an affiliate of H.I.G. Capital for cash consideration of 325 million pounds and its intention to return the proceeds of such disposal to shareholders.
Travis Perkins said Tuesday that it will pay a special dividend of about 79 million pounds in aggregate, representing 35 pence per ordinary share. The company plans to pay the Special Dividend on 5 November 2021 to Travis Perkins shareholders on the register at 6pm on 1 October 2021.
The company noted that it has a dividend reinvestment plan or “DRIP” in place which is operated by its registrars, Link. The deadline for elections for the DRIP in respect of the Special Dividend is 5.30 pm on 15 October 2021. DRIP elections in place at the Election Deadline will apply to both the Special Dividend and the interim dividend of 12.0 pence per ordinary share which was announced by the Company on 3 August 2021.
In addition to the Special Dividend, Travis Perkins will commence a new non-discretionary share buyback program. The first tranche of the Buyback will be for a maximum aggregate market value equivalent to 100 million pounds which will be bought back in the form of Travis Perkins ordinary shares. The Initial Program will commence on 1 October 2021 and will end on or before 24 March 2022.