Good news for Railtrack shareholders
Railtrack shareholders have today been informed they will receive their payouts earlier than expected and they will be larger than at first promised.
Link: Railtrack accounting methods under scrutiny
Many investors wrote off their investment when the company went into administration a year ago. But an initial offer of 245p to 255p a share, which appeared likely after a controversial government bailout, was improved to between 252p and 260p today by Railtrack management, with up to 220p paid out as early as January.
Reports suggest the government plans to bring Railtrack out of administration on 1 October, with the network handed over to successor Network Rail soon afterwards. Payments to shareholders would follow the sale of the network operator to Network Rail for £500m, and the sale of rights to the Channel Tunnel Rail Link to London & Continental Railways.
Railtrack expects to complete both deals early next month.
‘The board’s priority is now to return cash to shareholders in a tax-efficient manner as quickly as possible,’ said Geoffrey Howe, chairman of Railtrack Group, Railtrack PLC’s parent.