Description of operation
The nominal value of Bureau Veritas shares is to be divided by four on June 21, 2013. This operation aims to continue diversifying and extending the shareholder base.
Shareholders are to receive four new shares for one old share. The Bureau Veritas share price is to be automatically divided by four on opening of the Euronext Paris market on June 21, 2013.
This operation will be neutral for shareholders given that the value of their portfolio will not be changed.
Questions – answers
What does a share split consist of?
Dividing the nominal value of a share (also known as a stock split) is an operation that consists of reducing the nominal value of the share by dividing it and at the same time multiplying the number of shares making up the share capital. The share capital remains unchanged.
Why is Bureau Veritas undertaking a stock split?
The sharp increase in the Group's share price since its flotation, namely of 131% between October 24th, 2007 (EUR 37.75) and June 17th, 2013 (EUR 87.10), has prompted the Group to divide the nominal value of its stock in order to continue diversifying and extending the shareholder base.
What are the consequences for my portfolio?
Shareholders are to receive four new shares for one old share.
The share price is to be automatically dividend by four. However, the value of your portfolio will not be affected since you will own four times as many shares..
What will the nominal value be after this operation?
In order to avoid having a nominal share value of EUR0.03 per share (EUR0.12 dividend by four), the nominal value is initially to be increased, by incorporating the sums levied on the issue premium accounts, from EUR0.12 to EUR0.48.
Consequently, following the operation to divide the nominal value by four, the nominal value of the share is to stand at EUR0.12.
When is this split to take place?
The stock split is to take place on June 21, 2013.
Is the operation automatic?
Yes, the operation is to go ahead with no formalities for shareholders. For each share owned before the split, shareholders are to receive four new shares with a nominal value of EUR0.12.
Will the stock split generate costs for shareholders?
No, the stock split involves no costs for shareholders.
After the stock split how many shares will be in circulation?
The stock split will result in a multiplication by four in the number of shares in circulation.
Following the stock split, the number of shares in circulation is set to total 442,110,424 shares versus 110,527,606 shares previously.
Will the stock split have consequences on double voting rights?
Dividing the nominal value will have no impact on the double voting right as stipulated under Article 28.3 in the Group's by-laws. All new shares stemming from old shares, for which proof is provided of registration in the name of the same shareholder for at least two years, will benefit from the double voting rights.