Reckitt Benckiser has published a circular outlining the details of a £1.6bn special dividend, valued at £2.35 per ordinary share.

The health and hygiene firm, which owns brands including Dettol, Gaviscon and Nurofen, said the special dividend had been launched following the completion of the divestment of its essential home business to Advent International.

The special dividend is in addition to its ongoing share buyback programme and ordinary dividend policy.

Reckitt’s board said it would pay the special dividend to shareholders on the register on 30 January in pound sterling, while the equivalent amount in US dollars will be paid to ADR holders on 2 February.

Alongside this, the firm has proposed a share consolidation alongside the special dividend, on the basis of 24 new ordinary shares with nominal value of just over 10 pence for every 25 existing ordinary shares.

Reckitt stated that the share consolidation will reduce the number of existing shares in issue by the same proportion of market capitalisation returned via the special dividend.

While the number of shares held by each shareholder will reduce, the proportion of the total issued ordinary share capital of Reckitt held by each shareholder will remain unchanged.

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