Last checked at 29 May 2015 11:00
Completion of International Sale and Proposed Return of Capital
29 May 2015
Direct Line Insurance Group plc ("Direct Line Group" or the "Company") announces the completion of the disposal of its International division, which comprises its Italian and German operations, to Mapfre, S.A.. Total cash sale proceeds amounted to €550.0 million (£430.9 million)1.
As announced on 25 September 2014, substantially all of the net proceeds from the sale are proposed to be returned to shareholders and the Company accordingly intends to pay a special dividend of 27.5 pence per share, equating to approximately £412.5 million (the "Special Dividend"), as an interim dividend in respect of the financial year ending 31 December 2015.
Alongside the Special Dividend, the Company will propose a consolidation of its share capital in order to maintain comparability of share price and earnings per share before and after the Special Dividend (the "Share Consolidation").
The Special Dividend will be conditional on the Share Consolidation having been approved by shareholders and the Company intends to convene a General Meeting on 29 June 2015 to seek approval for the Share Consolidation. A circular to shareholders (the "Circular") regarding the Special Dividend and Share Consolidation, including the Notice of General Meeting, is expected to be posted to Shareholders on or about 5 June 2015.
The record date for the Special Dividend will be 6.00pm on Monday 29 June (the date of the General Meeting) and the ex-dividend date will be 30 June 2015. Payment of the Special Dividend is expected to be made on 24 July 2015. A detailed timetable and terms of the share consolidation will be set out in the Circular.
For further information, please contact:
Neil Manser | Jennifer Thomas |
Director of Corporate Strategy and Investor Relations | Head of Financial Communications |
Tel: +44 (0)1651 832183 | Tel: +44 (0)1651 831686 |
Notes
1. Euro proceeds converted to an equivalent amount of GBP based on a pre-agreed forward GBPEUR rate.
Direct Line Insurance Group plcDirect Line Group is headquartered in Bromley. Through its number of well-known brands the Group offers a wide range of general insurance products to consumers. These brands include Direct Line, Churchill and Privilege. The Group also provides insurance services for third parties through its partnerships division, Brand Partners. In the commercial sector, the Group's NIG and Direct Line for Business operations offer insurance products for businesses distributed through brokers or direct, respectively.