Capricorn Energy Plc - CNE - Share chat

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This is an oil and gas exploration and development firm based in the UK, operating for over 30 years.

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Return of US$50 million to shareholders

Following our Year-End Results announcement on 28 March, Capricorn is pleased to report that the Notice that is being posted today sets out further details of the 2024 Return of Cash and related matters.

Pursuant to the 2024 Return of Cash, Capricorn will pay a special dividend of approximately US$50 million (c.£39.35 million) to shareholders and complete a consolidation of Capricorn’s ordinary share capital. The special dividend is expected to be paid on 7 June 2024 to those on the register at 6.00 p.m. on 23 May 2024.

The Share Consolidation will reduce the number of Capricorn’s issued ordinary shares by an amount that reflects the value of the 2024 Return of Cash to shareholders relative to the market capitalisation of Capricorn prior to the 2024 Return of Cash. The aim of this is to ensure, so far as possible, the market price of an ordinary share remains approximately the same before and after the proposed 2024 Return of Cash and to maintain comparability of historical and future per share data. The Share Consolidation will reduce the number of ordinary shares in Capricorn which shareholders own, but not the proportion (subject to allowance for fractional entitlements).

What am I missing here? This looks to be a ~25% cash return to share holders with no impact on the share price.

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Sounds quite good to me

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I don;t think you are missing anything as such. Following the consolidation you will have less shares in the company so the overall value in your shares decrease, however you will then get the cash return to make up for it.

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They’re consolidating the total float by (roughly) the value of the cash payment. This’ll mean the holder will be up ~25% in cash and still hold the shares. From my reading anyway.

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So whats the conpany worth now looking at share price … is it a bargain price , be nice if we knew compamy long term plans reducing share price

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Share price has been hit hard