Coinciding with the interim dividend against its earnings in FY2016.
69,3% of Iberdrola's share capital chooses to receive new shares in group free of charge
- Shareholders continue to show confidence in management by company’s executive team and in share price performance
- This means the company will increase its capital by 1.539%
IBERDROLA notified the Spanish National Stock Market Commission (CNMV) today of the result of the most recent edition of its ‘Iberdrola Flexible Dividend’ scrip dividend scheme, coinciding with what would have been the interim dividend against its earnings in FY2016.
In this new edition of ‘Iberdrola Flexible Dividend’, the company once again offered its shareholders the possibility of choosing between receiving their returns in cash or in the form of new shares in the company, with no charges or commissions.
On this occasion, 69.3% of the share capital of Iberdrola has opted to receive new shares in the company. This once again confirms shareholder confidence in the management by the executive team at Iberdrola and in the positive share price performance by the group, which has consolidated its position as one of the leading utilities in the world by market cap.
To cover the result of this new edition of the scheme, Iberdrola will issue 97,911,000 new shares, thus increasing the company’s capital by 1.539%. Ordinary trading with these new shares is expected to commence on Wednesday, 1 February 2017.
On the other hand, the holders of 1,956,083,947 free-of-charge allocation rights preferred to accept the purchase commitment undertaken by Iberdrola, set at €0.135 gross per share. This means that the dividend has increased by 8% compared to the minimum amount committed in January 2016, which was €0.125 gross per share.
As a result, the company has acquired the aforementioned rights for a total gross amount of €264.071 million.
Iberdrola Flexible Dividend
Under the terms of this scheme, shareholders can choose between receiving shares in the group free of charge and with no withholding tax or receiving their returns in cash, either by selling their free-of-charge allocation rights for the set price undertaken by Iberdrola or by selling them on the market.
The three options offered by the ‘Iberdrola Flexible Dividend’ scheme - to receive new shares, to sell the allocation rights to the company or sell them on the market - are not mutually exclusive and therefore shareholders are entitled to choose one of the alternatives or combine them according to their preferences.
This edition of the ‘Iberdrola Flexible Dividend’ scheme will be completed by the complementary return against 2106, which is due to be approved at the next General Shareholders’ Meeting and to be paid next July.
Iberdrola is making progress in its commitment to increasing its annual shareholder returns in line with its earnings.