Constellation Energy (NYSE: CEG) today announced that its board of directors has declared a second-quarter dividend of 24 cents per share on the company’s common stock. However, the amount and payable date of the dividend, which equates to 96 cents per share annually, is contingent upon the closing date of the company’s pending merger with Exelon Corporation.
If the closing date of the merger is after June 11, a dividend of 24 cents is payable on July 2, 2012, to shareholders of record as of June 11, 2012. If the effective date of the merger is after March 12, 2012 – the record date for the previously declared quarterly dividend – but on or before June 11, 2012, the dividend will be pro-rated, with shareholders receiving $0.00264 per share per day starting March 13 and ending at the close of business the day before the merger closes. The pro-rated dividend, which equates to 24 cents per share for the full quarter, will be payable within 30 days after the merger closes to shareholders of record at the close of business on the day before the merger is completed. In accordance with the merger agreement, the pro rata dividend ensures that shareholders continue to receive dividends at the current rate until the closing of the pending merger with Exelon.
If the merger closes prior to March 12, 2012, the second-quarter dividend will not be paid and shareholders will receive a pro-rated first-quarter dividend at the rate of $0.00264 per share per day starting Dec. 13, 2012 – the day after the record date for the previous quarterly dividend – and ending the day before the merger closes. The pro-rated first-quarter dividend, which was declared by the board of directors on Oct. 21, 2011, will be paid within 30 days after the closing date of the merger to shareholders of record at the close of business on the day before the merger is completed.