Shareholders in Greencore will soon receive details of a new dividend reinvestment scheme, the first of its kind to be introduced by an Irish company. The scheme has been set up to allow shareholders to reinvest their cash dividends by purchasing company shares at special low dealing costs. Shareholders will receive a brochure later this month outlining how they can take up the offer.

Shareholders will be invited to buy Greencore shares at their market price out of the proceeds of their interim dividend payment.

Basically, they just sign a mandate authorising NCB Stockbrokers, which is acting for the company, to buy shares for them in the market.

The brokers will buy shares as soon as they can, and if shares are bought on different days at perhaps varying prices, an average price will be struck so that all shareholders will receive their shares at the same price. A special discount dealing price of 0.05 per cent of the transaction price plus the normal 1 per cent stamp duty will apply.

The scheme replaces Greencore's scrip dividend arrangement, following the tax changes introduced in the last Budget.