2018 capital management initiative
- a payment of 25 cents per ordinary share, comprising a capital return of 19.5 cents per ordinary share and a fully-franked special dividend of 5.5 cents per ordinary share; and
- an equal and proportionate consolidation of ordinary shares.
Collectively, these initiatives are referred to as the capital management initiative and are subject to shareholder approval at the 2018 Annual General Meeting to be held on 26 October 2018 (AGM).
Use the links below to learn more:
- What is the proposal?
- IAG capital management initiative at a glance
- Working example
- My payment details
- Further information available
If approved, the capital management initiative will provide shareholders with a payment of 25 cents per ordinary share through a capital return of 19.5 cents per ordinary share and the payment of a fully-franked dividend of 5.5 cents per ordinary share. The total payment to shareholders will be approximately $592 million.
The capital return and special dividend will be accompanied by an equal and proportionate consolidation of ordinary shares. To achieve the consolidation, every ordinary share will be converted into 0.9760 ordinary shares as follows:
If the capital management initiative is approved, the total number of ordinary shares on issue will be reduced from around 2,368 million to around 2,311 million (a reduction of around 57 million ordinary shares), however each shareholder will own the same proportionate interest in IAG after the consolidation as they did before the consolidation (subject to the rounding up of fractional entitlements to the next whole number of ordinary shares).
IAG announced the proposed $592 million capital management initiative to distribute surplus capital to shareholders in its 15 August 2018 full year results statement.
We have produced a quick guide to the capital management initiative.
The following table demonstrates the impact of IAG’s 2018 capital management initiative for an individual shareholder:
The special dividend and capital return will be paid to eligible shareholders by direct credit to the bank account that each shareholder has nominated for receipt of dividends.
If you have selected to participate in the dividend reinvestment plan (DRP) for the special dividend, the special dividend will be paid in accordance with your DRP preferences. The capital return is not eligible for participation in the DRP.
Please provide or update your payment details by visiting www.computershare.com.au/easyupdate/iag or contacting IAG’s share registry, Computershare Investor Services Pty Limited, on 1300 360 688 (in Australia) or + 61 3 9415 4210.
New or revised details must be received by 1 November 2018.
The key dates for the IAG 2018 capital management initiative, if approved, are:
26 October 2018
- Date of AGM and potential shareholder approval
29 October 2018
- Last date for trading ordinary shares to be entitled to the special dividend and capital return
- Last day for trading in pre-consolidated ordinary shares
30 October 2018
- Ex date – ordinary shares traded from this date will not be entitled to the special dividend or capital return
- Commencement of trading in consolidated shares on a deferred settlement basis
- Ordinary shares will trade during this period with the ticker code IAGDA instead of IAG
1 November 2018
- Record Date for the capital management initiative
2 November 2018
- Record Date for DRP participation
5 November 2018
- Share Consolidation Date – post-consolidation ordinary shares entered into register
7 November 2018
- Last day of deferred settlement trading
- Dispatch of holding statements in connection with the consolidation
8 November 2018
- Ordinary shares resume trading on a normal (T+2) settlement basis
26 November 2018
- Payment date for special dividend and capital return
- DRP shares issued and holding statements dispatched
For more information about IAG’s 2018 capital management initiative:
- Read the 2018 notice of meeting
- Call the IAG Information Line on 1300 360 688 (in Australia) or +61 3 9415 4210 on weekdays between 8.30am and 5.00pm Sydney time.