Share consolidation: 2022 Share Consolidation

share capital
board of directors

On 10 May 1999 the ordinary share capital of the Company was consolidated on the basis of nine new ordinary shares of 5 5/9 pence for every ten ordinary shares of 5 pence held on 7 May 1999. The consolidation was linked to the payment of a special dividend of 12 pence per share on 23 June 1999. They decide to go for the 1-for-5 reverse stock split, which essentially means merging five existing shares into one new share. Once the corporate action exercise is over, the company will have 2 million new shares (10 million / 5), with each share now costing $25 each ($5 x 5).

The company notifies the shareholders through email before the stock consolidation. Therefore, the total number of voting rights in GSK as at 19 July 2022 is 4,067,352,076. On 31 October 2008, a Rights Issue was announced on the basis of three new ordinary shares for every eight existing shares held on 14 November 2008, at a subscription price of 160 pence per share. Dealing in the new fully paid ordinary shares commenced on the London Stock Exchange on 15 December 2008. The new ordinary shares will be treated as the same asset acquired at the same time as your original holding. Therefore, your aggregate base cost remains the same as it was in February 1997, although owing to the two share consolidations, which have resulted in your holding fewer shares, the base price per share will have increased.

It can signal a company in distress since it raises the value of otherwise low-priced shares. The Depositary will suspend the issuance and cancellation of GSK ADSs from Thursday 14 July 2022 until Monday 25 July 2022. This means that during this time, you will not be able to convert your GSK ADSs into GSK Shares, surrender your GSK ADSs and receive underlying GSK Shares, or deposit your GSK Shares and receive GSK ADSs.


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Form 8973 — Report on organizational actions affecting basis of securities

The times and dates set out in the timetable below and throughout this announcement are indicative only and based on GSK’s current expectations and may be subject to change without further notice. By the agreement subsequently, ratified by the AA, each fully paid up member on midnight of 4 July was entitled to a cash payment of £248.56, which was paid by cheque in mid-October 1999. Our corporate factsheet provides an overview of Centrica’s business, our portfolio and our People & Planet Plan. The Company will make arrangements with CDP to effect the exchange for New Share Certificates pursuant to the Proposed Share Consolidation. This announcement does not constitute, or form part of, an offer or any solicitation of an offer for securities in any jurisdiction.

In 2002, the largest telecommunications company in the U.S., AT&T Inc. , performed a 1-for-5 reverse stock split, in conjunction with plans of spinning off its cable TV division and merging it with Comcast Corp. . The corporate action was planned as AT&T feared that the spinoff could lead to a significant decline in its share price and could impact liquidity, business, and its ability to raise capital. The proportionate change in share price also supports the fact that the company has not created any real value simply by performing the reverse stock split. Its overall value, represented by market capitalization, before and after the corporate action should remain the same. Consolidation of shares is a corporate action where a company reduces the number of outstanding shares by combining the shares and increasing the face value.

reverse stock splits

The share consolidation has no impact on the respective voting rights and privileges of the company’s Class A Shares and Class B Shares. Unless a holding of existing ordinary shares at the record time was exactly divisible by the denominator in the consolidation ratio, a shareholder will have a fractional entitlement to a new ordinary share. Other regular instances of reverse stock splits include many small, often non-profitable companies involved in research and development (R&D), which do not have any profit-making or marketable product or service.

Reverse splits are usually done when the share price falls too low, putting it at risk for delisting from an exchange for not meeting certain minimum price requirements. Having a higher share price can also attract certain investors who would not consider penny stocks for their portfolios. There will be no impact as the per-share dividend paid on Class A Shares and Class B Shares, when declared, will be proportionately adjusted to reflect the share consolidation. Bombardier’s Board of Directors has since announced that it plans to proceed with the Share Consolidation at a ratio of 25-for-1, to be executed on June 13, 2022.

The 2022 Management Proxy Circular includes discussion of certain tax consequences of the share consolidation, and we recommend that Bombardier shareholders consult with their own tax advisors as to the tax consequences in their particular circumstances. Information about our business for shareholders, potential investors, and financial analysts. Share Consolidationmeans the consolidation of the issued and outstanding Nomad Shares on May 31, 2021 on the basis of one post-consolidated Nomad Share for every ten pre-consolidated Nomad Shares previously issued and outstanding. Share Consolidationmeans the TSX and shareholder approved consolidation of the then existing Common Shares and Warrants of the Company on a one-for-twenty-five basis, effective at the opening of trading on June 18, 2013.

The factor by which the company’s management decides to go for the reverse stock split becomes the multiple by which the market automatically adjusts the share price. Say a pharmaceutical company has ten million outstanding shares in the market, which are trading for $5 per share. As the share price is lower, the company management may wish to artificially inflate the per-share price. The GSK Share Consolidation will not result in a change to the ratio of GSK shares represented by each GSK ADS. However, following the GSK Share Consolidation becoming effective, the existing GSK shares held by the ADS Depositary will be replaced with a smaller number of new GSK shares.

In such cases, companies undergo this corporate action simply to maintain their listing on a premier stock exchange. Depending on market developments and situations, companies can take several actions at the corporate level that may impact their capital structure. One of these is a reverse stock split, whereby existing shares of corporate stock are effectively merged to create a smaller number of proportionally more valuable shares. Since companies don’t create any value by decreasing the number of shares, the price per share increases proportionally. A reverse stock split is a type of corporate action that consolidates the number of existing shares of stock into fewer (higher-priced) shares.

Understanding Reverse Stock Splits

Admission of GSK’s new ordinary shares to the premium listing segment of the Official List of the Financial Conduct Authority and to trading on the London Stock Exchange’s Main Market for listed securities will take place at 8.00 a.m. Yes, Bombardier’s shares will continue trading on the Toronto Stock Exchange under the symbols “BBDA” and “BBD-B”. Shares trading on the OTC Markets exchange will trade for 20 business days under the symbol “BDRAD” and “BDRBD”, following the share consolidation, before reverting to the normal “BDRAF” and “BDRBF” symbols. At the time, Centrica made available a low-cost share-dealing facility for eligible members who wished to invest all of their consideration in Centrica ordinary shares.


The previous market cap is the earlier number of total shares times the earlier price per share, which is $50 million ($5 x 10 million). The market cap following the stock merger is the new number of total shares times the new price per share, which is also $50 million ($25 x 2 million). For example, if shares of a company planning a spinoff are trading at lower levels, it may be difficult for it to price its spinoff company shares at a higher price. This issue could potentially be remedied by reverse splitting the shares and increasing how much each of their shares trades for. Removal from a national-level exchange relegates the company’s shares to penny stock status, forcing them to list on the pink sheets. Once placed in these alternative marketplaces for low-value stocks, the shares become harder to buy and sell.

Share Consolidation definition

The net proceeds of the disposal were used to fund a proposed special dividend of 25p per share, accompanied by a share consolidation. In addition, a rolling share repurchase programme of £500 million over the following 12 months was announced. The special dividend and the recently announced interim dividend of 2.5p per share were both paid on 17 November 2004. Vodafone confirms that the ordinary shares held by its directors, persons discharging managerial responsibility and their connected persons will be consolidated with effect from 8.00 a.m. Today, but that the relevant percentage interests in Vodafone on consolidation will remain the same.

Shareholders who are not eligible for the VSA or who have opted out will receive new share certificates. A corporate action is any event, usually approved by the firm’s board of directors, that brings material change to a company and affects its stakeholders. It is expected that “regular-way” trading with respect to existing GSK ADSs will end at market open on Tuesday 19 July 2022 and that “regular-way” trading with respect to new GSK ADSs will commence on the New York Stock Exchange (the “NYSE”) at market open on Friday 22 July 2022. In addition, it is expected that new GSK ADSs will begin trading on a “when-issued” basis on the NYSE from market open on Tuesday 19 July 2022 and continue up to and including Thursday 21 July 2022. As a result, despite having a significant market capitalization, Bombardier has a much higher share count than other industrial companies with business and operations of a similar size. A stock dividend is a payment to shareholders that is made in additional shares rather than in cash.

More Definitions of Share Consolidation

A reverse stock split divides the existing total quantity of shares by a number such as five or ten, which would then be called a 1-for-5 or 1-for-10 reverse split, respectively. A reverse stock split is also known as a stock consolidation, stock merge, or share rollback and is the opposite of a stock split, where a share is divided into multiple parts. A share consolidation has no impact on a company’s value and corresponding worth of shareholder holdings. After the Share Consolidation, shareholders will own fewer shares but the price per share will be proportionately higher. As a result, the total value of their investment will not change, other than as a result of any fractional shares resulting from the consolidation that will be paid out in cash to the shareholder.

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