At the Annual General Meeting, on 12 July 2004, we announced the plan to return a further £2.3bn to shareholders by way of a Tender Offer.
The return of £2.3 billion was equivalent to £1 per share as there were 2.3 billion shares in issue. Only shareholders who chose to sell some or all of their shares received money for their shares, at what is known as the 'strike price'. This was determined as 362p – a price within the tender offer range of 332p to 380p set by the Board. As a result, on 28 October 2004 approximately 635.36m ordinary shares were repurchased by the Company and cancelled at a price of 362p per share at a total cost of £2.3 billion. This represented approximately 27.9% of the issued share capital at that time.
The consideration for the Tender Offer was sent to those shareholders who successfully tendered shares by 28 October 2004.
Those that did not sell their shares back to the Company in 2004 would still have held the same number as the did before the tender offer. However, in percentage terms, they would have held a bit more of the Company than they did before.