3i Infrastructure announces special dividend, share consolidation

In an update to the market on Wednesday, 3i Infrastructure confirmed a £425m special dividend after realising its investments in Elenia and Anglian Water Group, which generated "exceptional value” for shareholders.

The FTSE 250 company said that, following its January announcement of its intention to return surplus cash to shareholders, the board has approved the payment "in order to maintain an efficient balance sheet".

It said it will return the £425m to shareholders by way of a special dividend of 41.4p per existing ordinary share, to be paid on 29 March.

After payment of the special dividend, the company said it would retain sufficient liquidity to make new investments from the investment adviser's “healthy” pipeline.

A share consolidation was also proposed, with every 19 existing ordinary shares being consolidated into 15 new ordinary shares.

“The share consolidation is intended to maintain comparability, as far as possible, of the company's share price before and after the payment of the special dividend,” the board explained in its statement.

“A circular will be released later today containing the notice of an extraordinary general meeting of the company relating to a share consolidation in conjunction with the special dividend.”

The extraordinary general meeting would be held at midday on 14 March at the offices of Hogan Lovells International in London, 3i Infrastructure confirmed.