Canadian Life Companies Split Corp. (TSX: LFE, LFE.PR.B) has announced a stock split of its Class A shares, pending approval from the Toronto Stock Exchange (TSX). According to a news release, the stock split will affect Class A shareholders of record at the close of business on December 19, 2024.
For every 100 Class A shares held, shareholders will receive an additional 10 shares post-split. This action will increase the total distributions received by shareholders, with regular monthly cash payouts targeted at $0.10 per share. This represents a 14% increase in total distributions, the company noted.
The Class A shares are expected to begin trading on an ex-split basis when markets open on December 19, 2024. No fractional shares will be issued, and any resulting fractional shares will be rounded down to the nearest whole number.
The stock split is a non-taxable event for shareholders, and it follows the recent extension of the company’s termination date, which included a retraction right for both Class A and preferred shareholders. With the completion of the stock split, all retractions have been satisfied, and no further action will be required from shareholders.
The impact of the stock split will be reflected in the next reported net asset value per unit as of December 31, 2024.
Canadian Life Companies Split Corp. is an investment corporation designed to pay monthly cash dividends. It invests in a portfolio consisting of four publicly traded Canadian life insurance companies: Great-West Lifeco Inc., Industrial Alliance Insurance & Financial Services Inc., Manulife Financial Corporation, and Sun Life Financial Inc.
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