BNS Stock Dividend to Effect 2 for 1 Stock Split
Q. What was the reason for the stock dividend?
A. It will make the Bank's common shares more affordable for the average investor, which will promote increased interest in the shares and broader share ownership. We anticipate the increased interest and broader share ownership will also prove beneficial to existing shareholders.
Q. When was the last split?
A. The last split (2 for 1) was February 12, 1998.
Q. How many shares will I get?
A. Each outstanding whole common share will be entitled to one additional common share, effectively doubling the number of common shares.
Q. How will the stock dividend impact the market price per share?
A. It is anticipated that there will be a reduction in the market price per share by roughly half to correspond with the doubling of the number of shares.
Q. How will the stock dividend affect my regular dividends?
A. On April 28, 2004 shareholders of record at the close of business on April 6, 2004 will receive a dividend of 50 cents per common share, as well as one additional common share (i.e. the stock dividend). Note: the stock dividend takes place following the payment of the cash dividend of 50 cents per common share held as at Record Date.
Since there is expected to be a reduction in the market price per share by roughly half to correspond with the doubling of the number of shares, subsequent quarterly dividends will be at half the rate per share as was previously paid, subject to the approval of and declaration by the Board of Directors.
Q. At what date must I purchase the shares in order to receive the stock dividend?
A. In order to receive the stock dividend, buyers must buy before the ex-dividend date of April 2, 2004, since the stock dividend will be payable on April 28, 2004 to shareholders of record at the close of business on April 6, 2004.
The shares will trade on a post-stock dividend basis on the TSX commencing on April 2, 2004 (Ex-dividend date, as per TSX rules) and on the New York Stock Exchange commencing on April 29, 2004 (day after payment date, as per NYSE rules).
Q. When will share certificates for the stock dividend be mailed?
A. Share certificates will be mailed to registered shareholders of record on April 28, 2004, by regular first class mail.
No share certificates will be mailed to beneficial shareholders. Brokers will adjust the records of their clients' holdings to reflect the stock dividend.
Q. Can I pick up my share certificate?
A. No. Due to the large volume of certificates being paid out that day, arrangements cannot be made for certificates to be picked up.
Q. Will I have to pay tax on the stock dividend?
A. The Bank is ascribing essentially no monetary value to the stock dividend. Accordingly there will be no Canadian tax payable by shareholders in respect of the dividend.
Generally, there should be no U.S. tax payable by shareholders either.
For additional information, we advise shareholders to consult their tax advisor.
Q. How does the stock dividend affect the adjusted cost base when I sell my shares?
A. There is no change to the total adjusted cost base as the Bank is ascribing essentially no monetary value to the stock dividend. The adjusted cost base per share falls by half as the number of shares doubles (for example, 100 shares bought at $40 per share now become 200 shares with an adjusted cost base of $20 per share).
For more information, please contact:
The Bank's Transfer Agent:
Computershare Trust Company of Canada
100 University Avenue, 9th Floor
Toronto, ON M5J 2Y1
Tel. 1-877-982-8767
Fax 1-888-453-0330
Email: service@computershare.com
The Bank's Shareholder Services:
Finance Department
Scotia Plaza, 44 King Street West
Toronto, ON M5H 1H1
Telephone: (416) 866-4790
Fax: (416) 866-4048
Email: corporate.secretary@scotiabank.com
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