Central Securities Corporation Declares Year-End Distribution
NEW YORK--(BUSINESS WIRE)--Nov 5, 2019--
Central Securities Corporation (NYSE American: CET), a closed-end investment company, today declared a distribution of $1.15 per share on its Common Stock.
The dividend is payable December 23, 2019 to stockholders of record November 18, 2019. The distribution will be paid in additional shares of stock unless stockholders elect to receive the distribution in cash. The cut-off date for election of cash is December 5, 2019 (the “Cut-Off Date”).
The number of additional shares to which a stockholder will be entitled if he receives the distribution in stock will be computed as follows:
The number of shares held of record on November 18, 2019 will be multiplied by $1.15. This amount will be divided by the Reinvestment Price to determine the number of shares to be received. The Reinvestment Price will be the lower of the market value (as defined below) or the net asset value per share on the Cut-Off Date. Cash will be paid in lieu of fractional shares.
The market value will be the arithmetic average of the daily volume weighted average price (“VWAP”) of the Corporation’s Common Stock for each of the last three trading days ending on, and including, the Cut-Off Date, rounded to two decimal places.
Of the $1.15 per share to be paid, $0.47 is expected to be taxable as ordinary income (which includes $0.10 of short-term capital gain) and $0.68 is expected to be taxable as long-term capital gain. Tax treatment will be the same whether the distribution is received in stock or cash. The final tax breakdown of all amounts paid during 2019 will be available after year end.
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CONTACT: Central Securities Corporation
Marlene A. Krumholz, Secretary
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE
SOURCE: Central Securities Corporation
Copyright Business Wire 2019.
PUB: 11/05/2019 12:37 PM/DISC: 11/05/2019 12:37 PM