FAQs

FAQs

The information in the question and answer guide is intended to provide an introduction to J Sainsbury plc, its operating companies and shareholder issues. Click on a question to reveal the answer. These sections are regularly updated.

Last updated: 29 May 2012, 18:00.

Investors

Registrars

Dividends

  • When are dividends paid?

    Dividends are paid to registered shareholders twice a year, usually in January and July. View the Financial Calendar.

  • How will I receive my dividend?

    Dividends can either be paid by cheque sent to your registered address or paid directly into your bank or building society account.

    If you would like to receive a mandate form to enable you to have your dividend paid directly into your UK bank account, please contact the Registrars on 0870 702 0106. Alternatively, a mandate form can be downloaded from the Registrar's website, www.computershare.com.

  • How can I change the method of payment of my dividend?

    You must advise the Registrar in writing (with both signatories if joint ownership), quoting your name(s), address and any relevant bank account details.

  • Where is my dividend cheque?

    If you believe the cheque has gone missing, call the Registrar on 0870 702 0106.

  • How do I contact the appropriate person at the Registrar?

    For all enquiries concerning shares and/or dividends, please contact the Registrar. If the helpline cannot deal with your query you will be put you through to the appropriate department.

  • Do you have a Dividend Reinvestment Plan?

    The company has introduced a Dividend Reinvestment Plan for forthcoming and future dividends. This will allow shareholders to reinvest their cash dividend in shares bought on the London Stock Exchange through a specially arranged share-dealing service. An explanation of how the plan operates and the charges, together with a mandate for shareholders, is available from our Registrar.

  • Tax on shares and/or dividends?

    Your financial advisor, stockbroker or accountant.

Share Dealing

Announcements

Capital Return

  • General information

    These questions and answers are aimed particularly at our individual shareholders. They set out some commonly asked questions and provide brief responses. Please read both them and the circular carefully. If you still have any questions, you may call our Shareholder helpline on 0870 702 0106 (from within the UK) or +44 870 702 0106 (from outside the UK). Your call will be charged at national or standard international rates, as appropriate.

    The helpline cannot provide advice on the merits of the Return of Capital or give any financial advice. For financial and taxation advice you will need to consult your own financial and/or tax advisor.

  • What was being proposed?

    We returned 35 pence in cash to shareholders for each Sainsbury's share that shareholders held at the close of business on 16 July 2004. This was known as the 'Return of Capital'.

  • Why did we return this cash?

    On 30 April 2004 we announced that we had completed the sale of Shaw's, our US supermarkets business, to Albertson's, Inc. for US $2,475 million. We returned some of the proceeds (around £680 million) to shareholders. The remainder of the money was reinvested to grow Sainsbury's UK business.

  • How did we do it?

    We chose a method of returning the cash which enabled shareholders to receive it in a tax efficient manner known as a 'B Share scheme'. Full details were set out in the circular.

    For every Sainsbury's share that shareholders owned at the close of business on 16 July 2004, they received one B Share. Each B Share entitled them to receive 35 pence in cash.

  • Sainsbury’s share capital July 2004?

    In addition to the return of capital, there was also a consolidation of Sainsbury's shares and this reduced the number of shares that all shareholders held. If we had only made the repayment of cash, Sainsbury's share price would probably have fallen by about 35 pence per share because we would no longer own Shaw's or have the cash which had been returned to shareholders. Therefore, to help ensure that the share price stayed about the same immediately before and after the Return of Capital (apart from normal market movements), we reduced the total number of shares owned by all shareholders. This was known as the 'share consolidation'.

    As a result of the share consolidation, for every 8 Sainsbury's shares that shareholders owned at the close of business on 16 July 2004, they received 7 New Shares.

  • What did this mean to shareholders?
    • Shareholders continued to own the same proportion of Sainsbury's immediately after the share consolidation as they did just before, subject to fractional entitlements.
    • The total value of their new ordinary shareholding in Sainsbury's immediately following the share consolidation, plus the 35 pence for every B Share that they held, plus the value of any fractional entitlements should be equal to the value of their original holding immediately before the share consolidation (subject to normal market movements).

    Please refer to the examples below.

  • Fractions of Sainsbury’s shares?

    If, immediately before the share consolidation, a shareholders holding of Sainsbury's shares was not exactly divisible by 8, they will have been left with a fractional entitlement to a New Share. So, for example, a shareholder with 100 Sainsbury's shares would, after the share consolidation, be entitled to 87 New Shares and a fractional entitlement to 0.5 of a New Share. We combined all fractions and arranged to have them sold in the market. Shareholders were sent a cheque for their proportion of the sale proceeds on 26 July 2004.

  • Shareholder choice for B Shares?

    We gave shareholders the opportunity to choose the most tax efficient way of receiving their cash. They could choose to receive a dividend (which was treated as an income payment for tax purposes) or to have their B Shares repurchased by Sainsbury's (which was treated as a capital payment for tax purposes).

    If they chose to have their B Shares repurchased, they could also decide when they wanted to receive their cash, by holding on to some or all of their B Shares and electing to have them repurchased in the future. A shareholders choice was likely to depend on their tax circumstances. We have set out some general guidance below (see 'What is my tax position?' below, to assist you).

    Shareholders had three alternative choices for their B Shares:

    Alternative 1: Initial B Share Dividend (taxed as income)

    Shareholders could elect to receive a single dividend of 35 pence per B Share. If you chose to do this, you will have been sent a cheque for your dividend on 26 July 2004; or

    Alternative 2: Initial Redemption (repurchase) (taxed as capital)

    Shareholders could elect to have some or all of their B Shares repurchased by Sainsbury's on the First Redemption Date (20 July 2004) for 35 pence per B Share, free of expenses. If you made this choice, you will have been be sent a cheque for the proceeds on 26 July 2004; or

    Alternative 3: Future Redemption (repurchase) (taxed as capital)

    Shareholders could elect to retain some or all of their B Shares and have them repurchased in the future on two set dates in each calendar year until 18 July 2007 when Sainsbury's repurchased all outstanding B shares.

    If you retained some B Shares you will also have received a variable interest payment (taxed as dividend income) twice per year on your outstanding B Shares, with the first payment being made on 18 January 2005. On 4 June 2004, the relevant interest rate was 3.7%. Please see paragraph 5 of Part I of the circular for further details.

    Shareholders who failed to fill in their Election Form correctly, did not sign it or did not return it to Sainsbury's registrars to arrive by 5:00 p.m. on 16 July 2004, were deemed to have elected for Alternative 3: Future Redemption.

    Please note that the circular refers to the 'redemption' of your B Shares, but for the purposes of these questions and answers we have used the word 'repurchase'.

  • Examples illustrate three alternatives:

    Alternative 1: Initial B Share Dividend

    No. of
    Sainsbury's shares
    owned on 16 July 2004    		 No. of
    B Shares
    you will
    have received    		 No. of
    New Shares
    you will
    have received(1)    		 Cash payment you
    were sent by
    26 July 2004
    100 100 87 £35
    300 300 262 £105
    500 500 437 £175
    1,000 1,000 875 £350

    Alternative 2: Initial Redemption (repurchase)

    No. of
    Sainsbury's shares
    owned on 16 July 2004    		 No. of
    B Shares
    you will
    have received    		 Number of
    New Shares
    you will
    have received(1)    		 Repurchase proceeds
    you were sent
    by 26 July 2004
    100 100 87 £35
    300 300 262 £105
    500 500 437 £175
    1,000 1,000 875 £350

    Alternative 3: Future Redemption (repurchase)

    No. of
    Sainsbury's shares
    owned on 16 July 2004    		 No. of
    B Shares
    you will
    have received    		 No. of
    New Shares
    you will
    have received(1)    		 Illustrative
    six-monthly
    interest
    payment(2)    		 Repurchase proceeds
    you received
    in the future
    100 100 87 £0.64 £35
    300 300 262 £1.94 £105
    500 500 437 £3.23 £175
    1,000 1,000 875 £6.47 £350

    Note:

    (1) In addition, you may also receive the proceeds of sale of any fraction of a New Share to which you would be entitled following the share consolidation.

    (2) The illustrative interest payment is based on an assumed rate of approximately 3.7 per cent., as at 4 June 2004, and is rounded down to the nearest whole penny. The first payment will be made on 18 January 2005. This is a variable rate which could go up or down. The payment you may actually have received may have been more or less than is shown above.

  • How did I make my choice?

    Shareholders made their choice by completing and signing the Election Form sent to them with the circular and sending it back to Sainsbury's registrars, Computershare Investor Services PLC, at The Pavilions, Bridgwater Road, Bristol BS13 8ZZ by no later than 5:00 p.m. on 16 July 2004.

  • What is my tax position?

    For shareholders who are UK resident individuals then, depending on their circumstances, if they elected for:

    Alternative 1: Initial B Share Dividend

    the dividend will generally be treated as income for tax purposes; or

    Alternative 2: Initial Redemption (repurchase)

    the proceeds of repurchase will generally be treated as a capital disposal for tax purposes; or

    Alternative 3: Future Redemption (repurchase)

    the proceeds of a repurchase of your B Shares in the future will generally be treated as a capital disposal for tax purposes. The interest payment will generally be treated as dividend income for tax purposes.

    Broadly:

    • if shareholders were a basic rate tax payer, they should have no further tax to pay if they chose Alternative 1; or
    • if they are a basic rate or a higher rate tax payer and they do not expect to pay capital gains tax this year or in future years, you should have no further tax to pay if you choose Alternative 2. The majority of UK resident individuals do not pay capital gains tax.

    Generally, shareholders will be a basic rate tax payer if their total income is less than £36,145 in this tax year.

    Shareholders will be liable to pay capital gains tax if their net capital gains for this tax year exceed £8,200. When we say 'capital gains' we mean net capital gains for the year including any gain which would arise if you disposed of your B shares under Alternative 2 or 3.

    The above is only a basic guide. We have set out a general guide to UK taxation in Part VI of the circular and you should read it carefully. If you have a complicated tax position, or are otherwise in any doubt about your tax circumstances, or if you are subject to tax in a jurisdiction other than the United Kingdom, you should consult your professional advisor.

  • Shares issued following capital restructure?

    The redemption and cancellation of the B shares took place on 13 May 2005 for an aggregate amount of 1 penny for 320,050,073 deferred shares. Notification to shareholders of the redemption and cancellation of the deferred shares will appear in the Directors Report of the Annual Report and Financial Statements 2005. We will also add a note to the July dividend payment for those shareholders who have not elected to receive the full Annual Report.

ADRs

  • What is an ADR?

    An American Depositary Receipt (ADR) is a certificate, which is evidence of ownership of American Depository Shares (ADS).

  • What is an ADS?

    An American Depositary Share (ADS) is a US dollar-denominated form of equity ownership. It represents Ordinary Shares on deposit in the United Kingdom (UK).

    Holders of ADS receive dividends in US dollars, they also have the right to vote on important matters.

  • Difference between ADS and ordinary share?

    Ordinary Shares trade primarily in the UK and pay dividends in pounds sterling. American Depositary Shares (ADS) trade in the US over-the-counter market and dividends are paid in US dollars.

    Every J Sainsbury plc American Depositary Share represents four J Sainsbury plc Ordinary shares.

  • Ratio of ADS to ordinary shares?

    Every J Sainsbury plc American Depositary Share (ADS) represents four J Sainsbury plc Ordinary shares.

  • ADR trade symbol?

    The J Sainsbury plc American Depositary Receipts (ADR) trade under the symbol 'JSAIY' in the US over-the-counter market.

  • ADR CUSIP number?

    The J Sainsbury plc American Depositary Receipt (ADR) CUSIP number is: 466249208.

  • Level 1 ADR?

    A Level 1 American Depositary Receipt (ADR) is a convenient way for a non-US company to have its shares trade in the United States. Level 1 shares are traded on the over-the-counter market and there are minimal reporting requirements with the Securities and Exchange Commission (SEC).

  • Check ADS shareholding?

    For further information on American Depositary Shares (ADS) please contact:

    The Bank of New York
    Investor Services
    PO Box 11258
    Church Street Station
    New York, NY 10286-1258
    USA

    Toll-free telephone number for domestic callers: +1 888 BNY ADRs (1 888 269 2377)
    Telephone number for international callers: +1 212 815 3700

    Email: shareowners@bankofny.com
    Website: www.adrbny.com

  • Depository Bank?

    The Bank of New York
    Investor Services
    PO Box 11258
    Church Street Station
    New York, NY 10286-1258
    USA

    Toll-free telephone number for domestic callers: +1 888 BNY ADRs (1 888 269 2377)
    Telephone number for international callers: +1 212 815 3700

    Email: shareowners@bankofny.com
    Website: www.adrbny.com

    All queries relating to American Depositary Receipts and shares should be directed to the Bank of New York.