Mondi Plc has issued a notice to shareholders regarding the cash payment in respect of fractional entitlements to new ordinary shares resulting from the Share Consolidation. The Share Consolidation will replace every 11 Existing Ordinary Shares with 10 New Ordinary Shares, leaving some shareholders with fractional entitlements. The company has outlined the process for handling these fractional entitlements and the cash value to be paid to shareholders on the UK and South African Branch Registers.
For shareholders on the UK Register, the net proceeds of the sale of fractional entitlements will be paid in due proportion to the relevant shareholders, with payment expected to be effected on 12 February 2024. Shareholders on the South African Branch Register will have their fractional entitlements rounded down to the nearest whole number and the aggregated fractions will be sold in the market, with the cash value to be paid in South African Rand to the relevant shareholders on 29 January 2024.
The cash value in respect of fractional entitlements has been determined with reference to the volume weighted average price of Ordinary Shares traded on the JSE on 24 January 2024, and shareholders are advised on the specific cash value due to them in respect of any fractional entitlement. The company has also provided an example of fractional entitlement and has directed shareholders to the Circular for a general guide to the tax implications of the Share Consolidation, advising them to seek their own tax advice from an independent tax advisor.
Shareholders are encouraged to carefully review the Circular, which contains the terms and conditions of the Special Dividend and Share Consolidation, and to seek their own tax advice if they are in any doubt about their taxation consequences. The company and its advisors cannot be held responsible for the taxation consequences that the Share Consolidation may have on individual shareholders.