Business
Return of cash
Return of cash.
About this update from Topps Tiles Plc
[{"type":"text","content":"\n Topps Tiles PLC\n05 July 2006\n\n\n\n \n Topps Tiles plc\n\n £122.4 million return of cash to shareholders\n\n\nHighlights include:\n\n- Continued robust balance sheet and strong cash conversion at Topps\n Tiles\n\n- Proposal is to return 54 pence per ordinary share\n\n- Return is to be financed by existing cash resources and a new £116\n million senior debt facility\n\n- Result of proposal is:\n • A more efficient balance sheet\n • EPS enhancement for shareholders\n\n- Capital reorganisation will be undertaken in conjunction with the\n return of cash\n\nTopps Tiles plc (the 'Company') announces that it will shortly be posting a\ncircular to its shareholders and convening an extraordinary general meeting\n('EGM'), to be held on 31 July 2006, to obtain shareholder approval for the\nproposed return of £122.4 million of cash to shareholders.\n\nReturn of cash to shareholders\n\nThe Board of the Company is proposing to return cash to shareholders as a result\nof the Company's current balance sheet strength and strong cash flows, following\na review of the Company's financing requirements.\n\nThe return of cash, which will equate to 54 pence per ordinary share, is to be\nimplemented through an issue of redeemable B shares and non-redeemable C shares\nand a capital reorganisation, and is subject to approval by shareholders.\nSubject to such approval, shareholders will have the right to receive one B\nshare or one C share for every existing ordinary share, and will be able to\nelect between the following alternatives in relation to each of their ordinary\nshares:\n\n • Alternative 1: to receive a C share in relation to which a single\n dividend of 54 pence will be paid shortly after its issue. Following \n this, each such C share will automatically be converted into a deferred\n share which will have negligible value.\n\n • Alternative 2: to receive a C share and retain it (without the benefit \n of the single dividend of 54 pence per share) until the Company \n exercises its right to purchase each such C share for 54 pence on 30 \n March 2007.\n\n • Alternative 3: to receive a B share which will be redeemed shortly after\n its issue. The B shares will need to be paid up out of the Company's \n share premium account and special reserves and elections for the B \n shares will need to be scaled back to the extent that the...