Stagecoach Group Plc, the operator of Britain’s biggest rail-commuter franchise, split its stock into new ordinary shares and so-called “D” shares as a prelude to returning 340 million pounds ($532 million) to shareholders.
Following the receipt of investor approval for the plan on Oct. 7, Stagecoach divided its existing stock into 576 million ordinary shares, which began trading on the London Stock Exchange at 8 a.m., and 720 million D shares, it said today.
Payments for the purchase of 75 percent of the D shares and for a special dividend on the remaining quarter will be made on Oct. 21, Perth, Scotland-based Stagecoach said in its statement. The plan aims to return cash equal to about 20 percent of its market value to investors, according to details issued Aug. 19.
Stagecoach fell as much as 5.6 percent and was trading 2.4 percent lower at 258.4 pence as of 11:49 a.m. in London. That values the owner of the South West Trains commuter route and investor in Virgin Trains Ltd. at 1.49 billion pounds.