Reckitt Benckiser Announces £1.6 Billion Special Dividend and Share Consolidation

Reckitt Benckiser Group PLC (RKT) has unveiled plans to return approximately £1.6 billion of excess capital to shareholders following the completion of the divestment of its Essential Home business. This will be achieved through a special dividend and an associated share consolidation.

The proposed special dividend amounts to 235 pence per existing ordinary share. Shareholders on the register as of 6:00 p.m. on Friday, January 30, 2026, will be eligible to receive the dividend in pounds sterling. American Depositary Receipt (ADR) holders on the ADR register as of 9:00 a.m. (New York time) on Monday, February 2, 2026, will receive an equivalent amount in US dollars.

Subject to shareholder approval and admission of new ordinary shares, the special dividend is expected to be paid to shareholders on Friday, February 20, 2026, and to ADR holders commencing Friday, February 27, 2026.

This special dividend is in addition to Reckitt's ongoing share buyback program and ordinary dividend policy, signaling a strong commitment to returning value to shareholders.

Accompanying the special dividend is a proposed share consolidation on a 24 for 25 basis. This means that for every 25 existing ordinary shares, shareholders will receive 24 new ordinary shares. The share consolidation aims to reduce the number of outstanding shares in proportion to the capital returned via the special dividend.

The company anticipates that the market price of each ordinary share should remain broadly similar following the special dividend and the share consolidation. While the number of shares held by each shareholder will decrease, their proportion of the total issued share capital will remain unchanged, save for fractional entitlements.

Fractional entitlements arising from the share consolidation will be aggregated and sold in the market. Proceeds from sales below £5 will be donated to The British Red Cross. The value of any single shareholder's fractional entitlement will not exceed the value of one new ordinary share.

Shareholders will vote on the special dividend, share consolidation, and related resolutions at a general meeting scheduled for 8:00 a.m. on Tuesday, January 27, 2026. The company is also seeking approval to renew annual authorities to allot new ordinary shares, disapply pre-emption rights, and buy back its own shares.