Reckitt Benckiser publishes restructuring plans

Reckitt Benckiser has announced the posting of a pamphlet to its shareholders relating to planned corporate restructuring of the company.

Included in the plans are proposals to exchange shares in Reckitt Benckiser for the same number in a new holding company dubbed Reckitt Benckiser Group, together with a reduction in capital in this new company in order to facilitate the creation of distributable reserves.

The circular suggests that these new shares will be listed on the London Stock Exchange in the same manner as the existing shares in the company, which will then be de-listed from the markets.

All Reckitt Benckiser Preference shares will be cancelled and repaid at the sum of one pound each, while the company’s capital redemption reserve and share premium account will be cancelled.

“The proposals seek to create additional distributable reserves to allow the long-term continuation of the company’s progressive dividend and share buyback policies,” Reckitt Benckiser reports.

Furthermore, the firm noted that the restructuring will enable the cancelling and repayment of preference shares in the company.

Earlier this month, Reckitt Benckiser finalised the sale of its Hermal prescription skincare business unit to Spanish global pharmaceutical firm Laboratorios Almirall for 255 million pounds.