How are the Reed Elsevier PLC and Reed Elsevier NV dividends equalised?
Under the equalisation arrangements entered into on the merger of Reed Elsevier PLC’s and Reed Elsevier NV’s businesses in January 1993, Reed Elsevier PLC shareholders have 52.9% economic interest in Reed Elsevier, and Reed Elsevier NV shareholders (other than Reed Elsevier PLC) have a 47.1% economic interest in Reed Elsevier. Shareholders in Reed Elsevier PLC and Reed Elsevier NV enjoy substantially equivalent dividend and capital rights with respect to their ordinary shares. One Reed Elsevier NV ordinary share is, in broad terms, intended to confer equivalent economic interests to 1.538 Reed Elsevier PLC ordinary shares. The boards of both Reed Elsevier PLC and Reed Elsevier NV have agreed to recommend equivalent gross dividends (including with respect to the dividend on Reed Elsevier PLC ordinary shares, the associated UK tax credit), based on the equalisation ratio.
