What has happened to the Intercontinental Hotels Group share price?
Since its separation from Six Continents in April 2003, IHG has made a number of hotel disposals and has returned some £2.75 billion to shareholders in the form of share buybacks and special dividends. The latest of these became effective on Monday 12 th June, whereby a consolidation saw holders of 8 ordinary 10p shares receiving 7 ordinary 11/37p shares, as well as a special dividend of 118p. The share price was therefore adjusted accordingly and shareholders will receive new share certificates shortly after 22 nd June. In terms of the value of shareholdings, these will have remained the same less the special dividend. For example, a holder of 560 old shares had a value of (closing price 9 th June 941.5p) = £5272.40. As of Monday (theoretical opening price of 958p) they would have 490 new shares = £4694.20. In addition they would have received a special dividend of 490 x 118p = £578.20. Total = £4694.20 + £578.20 = £5272.40.
