Itaú Unibanco Holding SA said its board proposed a 50% stock split in which shareholders will receive one new share for every two shares of the same type they hold.
The proposed split of the bank's capital stock, which comprises 6,536,090,232 shares including 3,305,526,906 common and 3,230,563,326 preferred shares, is subject to shareholder and central bank approval.
Under the proposal, securities traded on the U.S. market will also be split by 50% so that investors receive one new American depositary receipt for every two ADRs they hold on the base date. The ADRs will continue to trade in the proportion of one preferred share to one ADR.
Itaú said it will maintain monthly dividends at 1.5 Brazilian centavos per share so that the total amount paid monthly will rise by 50% once the split is effective. The minimum annual dividend assured to preferred shares will be kept at 2.2 centavos per share.
The stock split will be carried out in whole numbers. Any remaining shares arising from fractions of shares will be separated, grouped in whole numbers and sold.
The company said it will announce the base date of the right to the stock split after the move is approved by Brazil's central bank,
As of May 24, US$1 was equivalent to 3.64 Brazilian reais.
