Financial statements
Notes to the financial statements
22 B shares
| Group 2007 £m |
Group 2006 £m |
Company 2007 £m |
Company 2006 £m |
|
|---|---|---|---|---|
| Opening balance | – | – | – | – |
| Issued | 700 | – | 700 | – |
| Repurchased and cancelled | (689) | – | (689) | – |
| Closing balance | 11 | – | 11 | – |
On 17 July 2006, the Company issued B shares, cumulative preference shares of one penny each, on the basis of one B share for each 531/8p ordinary share existing on 14 July 2006. The B shares carry the right to a cumulative preferential dividend at a rate per annum of 3.75% based on a notional value of 127p per B share, and an entitlement to a priority payment equal to 127p per B share, plus any accrued but unpaid dividend, from the assets of the Company on a winding up, but will not ordinarily carry voting rights at general meetings of the Company.
The Company repurchased and cancelled in aggregate 542,530,279 B shares on 24 July 2006 and 4 September 2006 at a price of 127p per share. The Company expects further offers to purchase B shares to be made in July 2007 and July 2008 at 127p per B share and has the right to effect the compulsory sale of any outstanding B shares on or after 14 July 2009.