Rogers Communications Inc. unveiled plans Tuesday to split its Class A voting shares and Class B non-voting shares on a two-for-one basis, and said its board has approved a more than doubling of the company's dividend.
In a news release, the communications and media concern said it will raise its annual dividend to 32 cents a share on a pre-split basis, from 15 cents currently. It said it will also begin paying dividends quarterly, a change from its current twice-a-year payment policy. The first quarterly dividend payment of 8 cents a share (pre-split) will be paid Jan. 2, to shareholders of record Dec. 20.
"These decisions . . . recognize the growing cash flows being generated by our business as well the board's interest in helping to widen distribution and make Rogers shares accessible to a broader range of investors," said Ted Rogers, president and chief executive of Rogers Communications.
The company's board has called a special shareholder meeting for Dec. 15 to vote on the stock split, but the proposal is certain to receive approval, which requires a simple majority of the Class A voting shares. About 91 per cent of the Class A voting shares are controlled, directly or indirectly, by Mr. Rogers, and the company said he has advised the board that he intends to vote all of his shares in favour of the stock split.
The company said it expects that shareholders of record as of the close of business Dec. 29 will receive one additional Rogers Communications share of the relevant class for each share held. It said it expects that the shares would be distributed on or about Jan. 5, 2007.
David Parkinson