FAQ's: Stock Split
On May 16, 2012, our board of directors declared a two-for-one stock split of our common stock. The split will be effected in the form of a 100% stock dividend, payable on June 15, 2012 to stockholders of record at the close of business on June 1, 2012.
As a result of the stock split, each Blyth stockholder will receive one additional share of common stock for each share of common stock owned. To assist our stockholders in their understanding of the stock split, we have provided answers to the following frequently asked questions:
1. What is a two-for-one stock split in the form of a 100% stock dividend?
A 100% stock dividend is a common way to implement a two-for-one stock split. On the payment date, June 15, 2012, each Blyth stockholder will receive one additional share of stock for each share owned as of the record date, June 1, 2012. Because there will be twice as many Blyth shares outstanding after the split, each share will be worth half of what it was worth immediately prior to the split, while the overall value of a stockholder’s investment remains the same.
2. What is the effective date of the stock split?
There are several key dates:
3. What is the record date for receipt of the stock split?
June 1, 2012. If you own common stock at the close of business on the record date, your shares will be subject to the stock split.
4. What is the payment date?
June 15, 2012. This is the date when Computershare and brokers post the split shares to the accounts of registered stockholders.
5. What is the ex-date?
This is also referred to as the “ex-split date” or “ex-distribution date.” It is June 18, 2012, which is the date that shares of our common stock will begin trading at the split-adjusted price on the New York Stock Exchange.
6. What is the mailing date for split shares?
On or about June 22, 2012 or June 25, 2012. This is the date Computershare mails written notice to registered stockholders indicating their split-adjusted share holdings.
7. Will there be a “when issued” market for the split shares?
It is not anticipated that the New York Stock Exchange will establish a “when issued” market for the new split shares.
8. What happens if I sell my shares after the record date and before the close of business on the payment date?
Shares of Blyth’s common stock sold after the record date and before the close of business on the payment date will continue to trade at the higher, pre-split price. Since sellers who sell their shares during this period will receive full value for the shares they sell, they are not entitled to the split shares they will receive by virtue of their being stockholders on the record date. Instead, they transfer their rights to the split shares to their buyers by means of “due bills” which will be redeemed on June 20, 2012.
9. Does the two-for-one stock split in the form of a 100% stock dividend dilute the value of my stock holdings by increasing the number of shares?
No, the two-for-one stock split will not change the proportionate interest a stockholder maintains in Blyth stock.
10. How does the stock split affect my stockholder voting rights?
The stock split will not affect your stockholder voting rights. Assuming your holdings remain unchanged, you will be entitled to vote twice as many shares, but your proportionate vote will remain the same relative to other Blyth stockholders.
11. Is the stock split a taxable transaction for me?
From a U.S. federal tax standpoint, the stock split is not a taxable event. The tax basis of each Blyth share owned after the stock split will be one-half of what it was before the split. Individual stockholders should consult with their personal tax advisor regarding their specific tax circumstances. Outside of the U.S., the tax effect of the stock split may vary by jurisdiction and foreign holders of Blyth stock should consult with a local tax advisor.
12. Will the par value change?
No, the par value of Blyth common stock will remain at $0.02 per share.
13. Will I receive a certificate for my split shares?
No. As a convenience to shareholders, all additional shares will be issued in book-entry form, either through the Direct Registration System (DRS) or as a credit to an existing Computershare account.
14. What do I do with my current stock certificates?
Keep them - do not destroy them. The stock certificates are still valid. All your stock certificates should be kept in a safe place. You may deposit existing certificate(s) to a DRS account at Computershare or in a brokerage account, or you may continue to physically hold them and be responsible for their safekeeping.
15. Who can I contact if I have questions?
If you have questions about the stock split, questions regarding stockholder records, stock transfers, stock certificates or other stock inquiries, please contact Computershare at:
Computershare Investor Services
Other questions, or requests for information, should be directed to: