TE Connectivity completes change in place of incorporation to Ireland

Rhea-AI Summary

TE Connectivity plc (NYSE: TEL) has completed its change in place of incorporation from Switzerland to Ireland. Shareholders received one share of TE Connectivity plc for each share of TE Connectivity held prior to the change. The company remains a U.S. SEC reporting entity, and its shares continue trading on the NYSE under the symbol TEL.

Shareholders previously approved a dividend of $0.65 per share, payable in four quarterly installments. The first two fiscal quarters' dividends for 2025 are scheduled for December 6, 2024, and March 7, 2025. From the third fiscal quarter of 2025, dividends will be declared and paid quarterly as per Irish Law.

TE Connectivity will apply to the Irish High Court for approval to reduce its share premium account, creating distributable reserves post-reincorporation. The hearing date will be announced on TE.com once known.

Positive

• Successful completion of reincorporation from Switzerland to Ireland
• Continuation of NYSE listing under the same ticker symbol (TEL)
• Maintenance of quarterly dividend payments ($0.65 per share)

Negative

• None.

Insights

Legal Expert

The reincorporation of TE Connectivity from Switzerland to Ireland is a significant corporate restructuring with several implications:

• Shareholders receive a 1:1 exchange of shares, maintaining their ownership stakes.
• The company retains its NYSE listing and SEC reporting status, ensuring continuity for U.S. investors.
• The move to Ireland may offer tax advantages and align with EU regulations, potentially benefiting the company's European operations.
• The approved dividend structure remains intact, with $0.65 quarterly payments continuing as planned.
• The creation of distributable reserves through a reduction of share premium account is a technical but necessary step under Irish law to enable future dividend payments and share buybacks.

While this change doesn't immediately impact day-to-day operations or financials, it could provide long-term strategic benefits in terms of corporate flexibility and potential tax efficiencies. Investors should monitor for any changes in financial reporting or corporate governance practices that may result from this reincorporation.

Financial Analyst

The reincorporation of TE Connectivity to Ireland is a strategic move with nuanced financial implications:

• Ireland's corporate tax rate of 12.5% is favorable compared to many other jurisdictions, potentially leading to tax savings.
• The continuation of the $2.60 annual dividend ($0.65 quarterly) signals financial stability and commitment to shareholder returns.
• The creation of distributable reserves is important for maintaining dividend payments and share repurchases under Irish law, ensuring capital return flexibility.
• No immediate impact on stock price or market cap is expected, as operations and financials remain largely unchanged.
• Long-term benefits may include enhanced access to EU markets and potential regulatory advantages within the European framework.

Investors should view this as a neutral to slightly positive development, focusing on potential long-term strategic and financial benefits rather than short-term impacts. The move demonstrates management's proactive approach to optimizing corporate structure for future growth and shareholder value.

GALWAY, Ireland, Sept. 30, 2024 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) today completed the change in the place of incorporation of the publicly traded parent company of TE Connectivity from Switzerland to Ireland. The change in place of incorporation resulted in each shareholder of TE Connectivity Ltd. receiving one share of TE Connectivity plc, a company incorporated under the laws of Ireland, for each share of TE Connectivity Ltd. held immediately prior to the change in incorporation. The company will continue to be a U.S. Securities and Exchange Commission reporting company and its ordinary shares will continue to trade on the New York Stock Exchange (NYSE) under the symbol TEL.

As a reminder, at the Annual General Meeting on March 13, 2024, shareholders approved the distribution of a dividend payable from reserves from capital contributions to be paid in four equal quarterly installments of $0.65. Dividends for TE Connectivity's first fiscal quarter of 2025 will be paid on December 6, 2024, to the shareholders of record on November 22, 2024, and for TE Connectivity's second fiscal quarter of 2025 on March 7, 2025, to the shareholders of record on February 21, 2025. Beginning in TE Connectivity's third fiscal quarter of 2025, dividends will be declared and paid on a quarterly basis by the Board of Directors as provided by Irish Law.

Further, on June 12, 2024, shareholders approved at a Special General Meeting the reduction of the share premium account of TE Connectivity plc to allow for the creation of distributable reserves following the effective date of the reincorporation. As required by Irish law, TE will apply to the Irish High Court for an order seeking the approval of the reduction of the company capital of TE by the cancellation of the entire amount standing to the credit of TE's share premium account. The date of the hearing before the Irish High Court shall be published on TE.com once known.

About TE Connectivity

TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, renewable energy, automated factories, data centers, medical technology and more. With more than 85,000 employees, including 8,000 engineers, working alongside customers in approximately 140 countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat, Instagram and X (formerly Twitter).

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SOURCE TE Connectivity plc

FAQ

What is TE Connectivity's new place of incorporation?

TE Connectivity has changed its place of incorporation from Switzerland to Ireland, effective September 30, 2024.

How does the reincorporation affect TE Connectivity's stock (TEL)?

TE Connectivity's stock (TEL) continues to trade on the New York Stock Exchange (NYSE) without any changes to the ticker symbol.

What is the dividend amount for TE Connectivity (TEL) shareholders?

TE Connectivity (TEL) shareholders will receive a dividend of $0.65 per share, payable in four equal quarterly installments.

When are the next dividend payment dates for TE Connectivity (TEL)?

The next dividend payments for TE Connectivity (TEL) are scheduled for December 6, 2024, and March 7, 2025, for the first and second fiscal quarters of 2025 respectively.