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Share capital history

Historical information about the share capital of Severn Trent PLC.

Flotation

On 22 November 1989 Offers for Sale were made by Schroders on behalf of The Secretary of State for the Environment and The Secretary of State for Wales, for the ten Water Holding Companies that were created following the implementation in July 1989 of The Water Act 1983.

353,646,000 Ordinary Shares of £1 each were offered in Severn Trent PLC (a Water Holding Company) at a price of 240p. The deadline for applications was 6 December 1989 and 100p of the offer price was payable on application. A second instalment of 70p was payable on 31 July 1990 and the final instalment was payable 30 July 1991. Severn Trent PLC was listed on the London Stock Exchange with effect from 12 December 1989.

A number of special incentives were offered at the time of the sale.  Eligible customers were able to opt for one of the following:

  • Customer Discount

  • Customer Share Bonus

  • Non-Customer Share Bonus

Special offers were also available to employees and pensioners:

  • Employee Discount and Priority Offer

  • Pensioner Priority Offer

     

Customer discount

 

In respect of each Severn Trent PLC share purchased, a discount of 10p on the second instalment was offered, if the share was held continuously until 28 June 1990.  A further discount of 10p per share on the final instalment was available if the share was held continuously until 27 June 1991. The maximum discount available was £300.

   

Number of shares 

held continuously

Amount of discount on 

second instalment


Amount of discount

on final instalment

Total discount

100

£10

£10

£20

200

£20

£20

£40

500

£50

£50

£100

1,000

£100

£100

£200

1,500 and above

£150

£150

£300
two men sat down talking

Customer share bonus

 

For every ten shares purchased in Severn Trent PLC and which continued to be held up to and including 31 December 1992, one additional share was awarded. The maximum number of additional shares available per application was 300. Fractions of shares were not awarded.

 

Non-customer share bonus

 

For every twenty Severn Trent PLC shares which continued to be held up to and including 31 December 1992, one additional share was awarded. The maximum number of additional shares available per applicant was 150. Fractions of shares were not awarded. 

 

Special offers for employees and pensioners

Free Offer

Under which employees eligible to join the Severn Trent PLC Trust Scheme were able to apply for shares to a fully paid value of approximately £2 for every year of continuous employment completed as at 21 November 1989 up to a maximum of about £30 in value of such additional shares.

Matching Offer

Under which eligible employees were able to apply at the offer price (payable in full on application) for shares up to a fully paid value of about £200; for each share purchased and held under the Trust Scheme, the Secretary of State transferred to the Trustee, two shares which were held for the benefit of that employee.

Employee Discount and Priority Offer

Under which persons employed on 21 November 1989 by Severn Trent PLC or a wholly owned subsidiary, were able to apply for (1) Shares up to a fully paid value of about £2,350 at a discount equal to 10 per cent of the offer price and (2) additional shares up to a fully paid value of about £12,000.

Pensioner Priority Offer

Under which eligible pensioners who on 21 November 1989 were in receipt of a pension or pension benefit paid by any pension scheme of any Water Authority or Water Group were able to apply for shares up to a fully paid value of about £12,000.  Employees of the water industry who retired before 1 April 1974 and their dependants were not eligible for the Pensioner Priority Offer.

Contact us

Get in touch with our team if you have any questions about our share capital history.

However, if you require further information regarding the tax treatment of your shares in Severn Trent,
or are in any doubt about your taxation position, you should obtain professional advice.

 

Email us

Share capital reorganisation

On 11 August 1997, the Company’s share capital was reorganised and then consolidated whereby, for every 20 existing Ordinary shares of £1.00 each, shareholders received 19 new Ordinary shares of 655 / 19 pence each and 20 B shares of 38 pence each. 

At the Annual General Meeting on 1 August 2000, shareholders resolved to cancel the B shares and, following an application to the Courts, the capital of the Company was reduced and the B shares were cancelled with effect from 1 November 2000.

 

Capital gains treatment

 

For the purpose of Capital Gains Tax calculations, the market values of the new Ordinary shares of 655 / 19 pence each and the B shares of 38 pence each on 11 August 1997 were 820 pence and 36.25 pence respectively.  The base cost of the old Severn Trent shares held immediately prior to the Share Capital Reorganisation was apportioned between the new Ordinary shares of 655 / 19 pence each and the B shares of 38 pence each, in the following ratio –

Ordinary shares of 655 / 19 pence each - 95.55%
B shares of 38 pence each - 4.45%

 

Worked example of our capital gains treatment

 

You can download a PDF of a worked example of our capital gains treatment.

However, if you require further information regarding the tax treatment of your shares in Severn Trent

or are in any doubt about your taxation position you should obtain professional advice.

 

Download a worked example

Contact us

Get in touch with our team if you have any questions about our share capital reorganisation.

However, if you require further information regarding the tax treatment of your shares in Severn Trent,
or are in any doubt about your taxation position, you should obtain professional advice.

 

Email us