Blackmores takeover is official: Here’s when to expect the cash for your shares

Blackmores Ltd (ASX: BKL) shares won’t be trading on the Australian share market for much longer.

That’s because the Federal Court of Australia has just made orders approving the proposed $1.88 billion takeover of the health supplements company by Kirin Holdings Company by way of a scheme of arrangement.

The next step will involve Blackmores lodging a copy of the court orders with the Australian Securities and Investments Commission tomorrow, at which time the scheme will become legally effective.

Once that is done, the company will request that the quotation of Blackmores shares on the ASX be suspended from close of trading on Friday.

When will Blackmores shares turn into cash?

Once the scheme becomes legally effective, eligible Blackmores shareholders will be sent a total of $91.71 cash per Blackmores share on the implementation date for the scheme. This is currently expected to be 10 August.

But the cash won’t stop there. Kirin Holdings also approved the payment of a special dividend by Blackmores.

This will see eligible Blackmores shareholders receive a fully franked special dividend of $3.29 per share. At present, the company is planning to pay this dividend on 1 August 2023. This represents an attractive ~3.5% fully franked dividend yield at current prices.

Combined, this will mean shareholders receive a cash payment of $95 per share next month.

To be eligible for all the above, investors need to own Blackmores shares before they are suspended from trade at the end of tomorrow’s session.