8-KCorporate ChangesExhibits & Filings

TE Connectivity plc 8-K Report, Bylaw Amendment (Mar 8, 2011)

Filed March 8, 2011For Securities:TEL

Summary

TE Connectivity plc (formerly Tyco Electronics Ltd.) filed an 8-K on March 8, 2011, to report amendments to its Articles of Association. These amendments officially reflect the fourth and final installment of a previously approved reduction in the par value of the company's shares. This par value reduction, totaling CHF 0.72 per share, was structured as a dividend-like distribution to shareholders and was paid in four equal installments, with the final payment expected around March 16, 2011. The key takeaway for investors is the formalization of a capital reduction that has been executed through installment payments over time. This action directly impacts the stated par value of the company's shares on its balance sheet, reducing it from CHF 0.90 to CHF 1.37 per share, resulting in a decrease in the aggregate par value of the issued share capital. While this event is primarily an administrative and accounting adjustment, it represents the conclusion of a shareholder distribution strategy initiated in the prior year.

Key Highlights

  • 1Formalization of share capital reduction through amended Articles of Association.
  • 2Effective date of amendment: March 8, 2011, filed with the commercial register of Schaffhausen, Switzerland.
  • 3Final installment of CHF 0.18 per share (US$0.16) paid around March 16, 2011.
  • 4Total par value reduction per share: CHF 0.72, executed in four installments.
  • 5Resulting par value per share is now CHF 1.37.
  • 6The amendment reflects a shareholder distribution strategy approved in a prior year.

Frequently Asked Questions

The main purpose of this 8-K filing is to report the formal amendment to TE Connectivity's Articles of Association, reflecting the final installment of a reduction in the par value of its shares. This is an administrative update to reflect a prior shareholder-approved distribution.

For shareholders, this represents the completion of a distribution totaling CHF 0.72 per share, paid out in four installments. The final installment was paid around March 16, 2011. While it's a reduction in the stated par value on the company's books, it was effectively a return of capital to shareholders.

Following the amendment and the completion of the par value reduction installments, the new par value of each TE Connectivity share is CHF 1.37.

No, this is not a new dividend payment. It is the formalization of a reduction in the par value of the company's shares, which was previously approved by shareholders and structured as a distribution to them over four installments.