Victoria proposes special dividend and 50% ownership for Wilding
Victoria Carpets is proposing paying shareholders a special dividend worth more than £20m which would see its executive chairman own half the company.
Victoria wants to pay the dividend of £2.92 a share as a result of a contract it agreed with Geoff Wilding (pictured) in April 2013 which outlined how at least £3 a share had to be paid to shareholders within two years before Wilding began to benefit under the contract.
If shareholders approve the payment at a general meeting on 8 July, Victoria will issue new shares to Wilding's Camden Trust rather than make a cash payment. Camden will then own 50% of Victoria's shares.
'We are delighted to be proposing a special dividend to shareholders and further that Camden has conditionally agreed to subscribe for shares in the company. We therefore recommend that shareholders vote in favour of all resolutions at the general meeting,' says Andrew Harrison, Victoria senior independent non-executive director.
The Takeover Panel has said that Camden will not have to make an offer for the rest of the shares if the proposal is agreed.