InterContinental Hotels special div

[pyad]

IHG announces the sterling value of its US 262.1¢ special div at 203.8p:

https://www.investegate.co.uk/interco-- ... 00033879N/

This has already gone xd and is payable on 29 January. It's a straightforward payment, unaccompanied by any share consolidation.

I mention it here because it is in HYP1 and because some here will hold it I expect, particularly non tinkerers, from the days when it was one of the two demergers from the old Bass holding. HYP1 holds 433 IHG so the cash released will be about £882 which I'll reinvest in the optimum choice at the time, though as things stand it won't be IHG itself because its forecast yield of around 2.5% is far too low.

Incidentally IHG has been a spectacular performer, both in the all-important divs over the years and also the capital, though secondary or irrelevant depending on your viewpoint, is massively up and making it the lead percentage gainer there by a very long way.

[daveh]

I have it down as a share consolidation.

IHG published a circular (the "Circular") on 14 December 2018 which contained notice of its General Meeting and provided further details of the Company's proposed US$500m Special Dividend and Share Consolidation. In anticipation of the Share Consolidation, and as outlined in the Circular, IHG today announces that it has engaged Goldman Sachs International ("Goldman Sachs") in relation to its programme for the purchase, during the period which commences today and ends no later than 19 December 2018, of 10 ordinary shares of 19 17/21 pence each in the capital of IHG ("Shares") for cancellation (the "Programme"), to ensure the number of the Company's existing shares is divisible by the consolidation ratio proposed for the Share Consolidation.

Special dividend



The proposed amount of the Special Dividend is US$2.621 per Existing Ordinary Share. The corresponding amount in pounds sterling will be announced on Thursday, 17 January 2019, calculated based on the average of the market exchange rates for the three dealing days commencing Monday, 14 January 2019. The Board is proposing to pay the Special Dividend to Shareholders on the Register as at 6.00pm on Friday, 11 January 2019 in pounds sterling and to ADR holders on the ADR register as at 4.00pm (New York time) on Friday, 11 January 2019 (being the close of business on the day before the ADR effective date) in US dollars. The Special Dividend is expected to be paid to Shareholders and to ADR holders on Tuesday, 29 January 2019.



Share consolidation



It is proposed that the payment of the Special Dividend be accompanied by a consolidation of the Company's ordinary share capital. A resolution to effect the Share Consolidation will be proposed at the General Meeting, details of which are set out in the Circular. The Share Consolidation proposes to replace every 20 Existing Ordinary Shares of IHG with 19 New Ordinary Shares. Upon the Share Consolidation, the nominal value of the Ordinary Shares will change from 19 17/21 pence per Ordinary Share to 20 340/399 pence per Ordinary Share. Fractional entitlements arising from the Share Consolidation will be aggregated and sold in the market on behalf of the relevant Shareholders. The proceeds of the sale are expected to be sent to Shareholders on Wednesday, 23 January 2019. The value of any Shareholder's fractional entitlement will not exceed the value of one New Ordinary Share.

[pyad]

Thanks, you are right of course Dave, my mistake as I'd overlooked the consol.

I'll be adjusting the holding in HYP1 accordingly but will still reinvest the sum elsewhere in the portfolio.