This document outlines how to process the 26 November 2018 Insurance Australia Group (IAG) distribution and share consolidation in Class.
On 15 August 2018, IAG announced its intention to make a distribution of 25 cents per share to holders of IAG ordinary shares with the effective date being 31 October 2018.
The distribution of 25 cents per share comprised of:
- 19.5 cents return of capital (capital component)
- 5.5 cents fully franked dividend (dividend component)
Following the distribution, IAG also undertook a share consolidation through the conversion of each existing IAG share into 0.976 of IAG shares.
The ex-date for the special dividend and capital return was 31 October 2018, together with the commencement of trading of the consolidated IAG shares on a deferred settlement basis. The distribution was paid on 26 November 2018.
- Special Dividend: 5.5 cents per ordinary share
- Capital Return: 19.5 cents per ordinary share
- Share Consolidation: Every 1,000 IAG shares to be converted to 976 IAG shares.
Step 1 - Process the special dividend via Generate Income
Use the Generate Income function to generate the special dividend. Refer to User Guide Generating Income for Listed Securities for detailed steps.
Step 2 - Process the capital return
This corporate action is available at Fund Level. Refer to User Guide Corporate Actions Console and refer to Browse Corporate Actions (Fund Level)
Once the capital return transaction is processed, the cost base of IAG will reduce by capital return amount.
Step 3 - Process the Share Consolidation
This corporate action is available at the Fund Level. Refer to User Guide Corporate Actions Console and refer to Browse Corporate Actions (Fund Level)