I3 Energy PLC has proposed a capital reduction plan aimed at boosting reserves to facilitate dividend payments.
Updating on Monday, I3 said the plan would involve the capitalisation of the firm’s £148.5 million transaction reserve through the issue of new shares, which would then be cancelled.
“This is expected to increase distributable reserves in the company to facilitate the future payment of dividends to shareholders [...] or to allow the redemption or buy-back of the company's shares,” I3 said.
Newly created capital reduction shares would have a nominal value of £0.0001 and a share premium of £0.1234.
The number of I3’s ordinary shares in issue would remain unchanged meanwhile, with the proposal set to be detailed in a circular ahead of the firm’s general meeting next month.