Carnival to sell PLC shares to buy back Corporation stock

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Category: Top Headlines

Published on Thursday, 02 July 2009 15:52

Written by Kari Reinikainen

Carnival Corporation & plc says that Carnival Investments Limited, a wholly owned subsidiary of Carnival Corporation, intends to sell up to 25,000,000 existing Carnival plc ordinary shares that it holds in the UK market ("Share Sales").

The ordinary shares will be sold from time to time in the UK in "at the market" transactions at times when the Carnival Corporation common stock is trading at a discount to Carnival plc shares. Carnival Corporation & plc intend to use the net proceeds of the Carnival plc Share Sales to repurchase Carnival Corporation common stock on at least an equivalent basis in the U.S. market ("Stock Repurchase"), and to use the remaining net proceeds, if any, for general corporate purposes. Carnival Corporation & plc only intends to trade where it will derive an economic benefit from the Carnival plc Share Sales and Carnival Corporation Stock Repurchase program.

Under the terms of the articles of association of Carnival plc the ordinary shares sold by Carnival Investments Limited will, once held outside of the Carnival Corporation group, become re-enfranchised for voting purposes.

The Carnival plc Share Sales and Carnival Corporation Stock Repurchase program will be run in conjunction with the previously announced Carnival plc Share Repurchase and Carnival Corporation Stock Issuance program. Only one of the programs will be operated by Carnival Corporation & plc at any given time.

Carnival Corp & plc comprises two listed holding companies, the Panmamanian-registered but US-headquartered Carnival Corporation and Carnival plc, with is  domiciled in the UK. The former company is listed in the US, while shares in Carnival plc are traded both on theLondon and New York Stock Exchanges. The two companies trade as a single entity and their boards comprise the same members.

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