Summary
Schlumberger Limited (SLB) announced a significant corporate action on January 19, 2006, involving a two-for-one stock split of its common stock. This action aims to increase the accessibility of its shares by reducing the per-share price, potentially attracting a broader investor base. The split is set to take effect for stockholders of record as of March 1, 2006, with new shares distributed on April 7, 2006. In conjunction with the stock split, the company's Board of Directors also declared an increased quarterly dividend. On a pre-split basis, the dividend will be 25 cents per share, payable on April 7, 2006, to shareholders of record on March 1, 2006. Importantly, this increased dividend rate will only apply to shares outstanding prior to the stock split, effectively meaning a 12.5 cent per share dividend on a post-split basis. This move signals confidence from management and aims to reward shareholders.
Key Highlights
- 1Announced a two-for-one (2-for-1) stock split of its common stock.
- 2Stockholders of record on March 1, 2006, will receive one additional share for each share held.
- 3The new shares resulting from the stock split will be distributed on April 7, 2006.
- 4The Board of Directors declared an increased quarterly dividend of 25 cents per share on a pre-split basis.
- 5The increased dividend is payable on April 7, 2006, to stockholders of record on March 1, 2006.
- 6The dividend will be paid only on shares outstanding prior to the stock split, equivalent to 12.5 cents per share post-split.
- 7Various registration statements (Form S-8, S-3, S-4) will be adjusted to reflect the stock split.