This ASX 200 stock just announced a special dividend. Here's the lowdown

Blackmores will be paying a special dividend before disappearing from the ASX boards.

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Blackmores Ltd (ASX: BKL) shares may not be on the ASX boards for much longer.

That's because, next week shareholders will be given the opportunity to vote on the $1.88 billion takeover proposal tabled by Japanese giant, Kirin Holdings Company.

If they approve the deal, the ASX 200 share will cease trading in the days following the meeting.

But that won't be the only thing that happens. Blackmores will also then prepare to pay eligible shareholders a special dividend.

What special dividend is this ASX 200 stock paying?

This morning, Blackmores revealed that its board of directors has determined to pay a fully franked special dividend of $3.29 per share. This represents a ~3.5% yield at current levels.

The release reveals that to be eligible for this dividend you will need to be a shareholder on the record date of 26 July.

Though, with the ASX 200 stock scheduled to have its last trading day on 21 July before being suspended, you may have to get in earlier.

It is also worth noting that this special dividend, which is expected to be paid on 1 August, is conditional on the scheme becoming effective. If the scheme is voted down by shareholders or collapses for some other reason, then there will be no dividend.

The same applies to the cash consideration of $91.71 for the takeover. That is scheduled to be paid to eligible shareholders on 10 August if all goes to plan.

Board and major shareholder approval

The Blackmores' board unanimously recommends the scheme to shareholders. As does the company's largest shareholder, Marcus Blackmore, who holds or controls approximately 18% of its outstanding shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Blackmores. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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