8-KCorporate ChangesExhibits & Filings

TE Connectivity plc 8-K Report, Bylaw Amendment (Nov 30, 2012)

Filed November 30, 2012For Securities:TEL

Summary

TE Connectivity Ltd. (TEL) filed an 8-K on November 30, 2012, primarily to report amendments to its Articles of Association. These amendments reflect the third installment of a previously approved distribution to shareholders through a reduction in the par value of its shares. This specific filing notes the effective date of the amended Articles of Association as November 30, 2012, which reduces the par value per share from CHF 0.80 to CHF 0.77. This action is part of a plan to distribute CHF 0.80 per share in four equal installments, with the third installment scheduled for payment on December 14, 2012. For investors, this filing signifies a direct return of capital to shareholders through a par value reduction rather than a traditional dividend. The company is executing on its commitment to return value, with this being the third of four such distributions. Investors should note that this par value reduction impacts the nominal value of the shares and is not a taxable event in itself, although the subsequent cash payment is.

Key Highlights

  • 1TE Connectivity Ltd. filed an 8-K on November 30, 2012, to report amendments to its Articles of Association.
  • 2The amendments are related to a shareholder-approved distribution via a reduction in the par value of the company's shares.
  • 3The par value per share has been reduced from CHF 0.80 to CHF 0.77.
  • 4This represents the third of four equal installments of a par value reduction totaling CHF 0.80 per share.
  • 5The third installment of the distribution will be paid as US$0.21 per share on December 14, 2012.
  • 6The amended Articles of Association became effective upon filing with the Swiss commercial register on November 30, 2012.
  • 7The filing also includes Exhibit 4.1, a Form of Share Certificate reflecting the new par value.

Frequently Asked Questions

The primary purpose of this 8-K filing is to officially report the amendment to TE Connectivity's Articles of Association. This amendment reflects a reduction in the par value of the company's shares, which is part of a previously announced plan to distribute capital to shareholders.

This par value reduction is a method for TE Connectivity to return capital to its shareholders. It's being implemented in four equal installments, and this filing confirms the third installment's effective date and the resulting new par value per share. Shareholders will receive a cash payment equivalent to US$0.21 per share on December 14, 2012, as part of this process.

Following the amendment and its filing with the Swiss commercial register on November 30, 2012, the par value of each TE Connectivity share is now CHF 0.77.

Generally, a reduction in par value itself is not considered a taxable event for shareholders. However, the subsequent cash distribution paid to shareholders on December 14, 2012, equivalent to US$0.21 per share, may be subject to tax depending on the shareholder's jurisdiction and individual tax circumstances. Investors should consult with their tax advisors.