Tencent is distributing JD.com shares (HK-listed version) as dividends. Shareholders will get 1 JD.com share for every 21 Tencent shares held. But if your holding is not in a multiple of 21 shares, you will be receiving cash instead, no fractional shares will be distributed.
Given this ratio and the JD.com share price of HK$279.20 and Tencent’s share price of HK$443, the dividend yield is about 3%.
Overseas shareholders will likely get the shares because Tencent shares are held in custody by the brokers. The brokers will be given the shares and in turn credit them into the clients’ accounts. If you don’t want to hold the JD.com shares, you can sell them for cash.
How would they handle odd lots? Different brokers may have different practices, it is best to check with your broker if you’re a Tencent shareholder.
The Ex-Dividend date has been set on 20 Jan 2022. You’ll have to hold your Tencent shares until that date to qualify....