Ok, so let's do some numbers.Board expects Net Proceeds from the...

Ok, so let's do some numbers.

Board expects Net Proceeds from the sale to be "around $4.1Billion".
Board's intention is "to return the majority of these Net Proceeds to shareholders, primarily by way of a Capital Return and a smaller fully franked dividend component."
Board anticipates that this will happen around first quarter of CY25.
Suncorp is seeking an ATO ruling from ATO and ARPA approval.

So for the purposes below I will assume Net Proceeds is 100% of the headline number (to give an upper estimate of the return) and we can scale down from there according to our own assessments.

Suncorp has 1,272,316,092 shares on issue (see July 12 2024 announcement).
So, the total return could be up to $3.22 per share.
(for reference SUN last traded at this level at the start of 1996, so not many holders would be liable for CGT - but do await the ATO ruling on how the payout will be treated.)

Next question is how much of the total return could be paid as a fully franked Special Dividend.
The Franking Credit balance disclosed in FY23 Annual Report (Note 20 to the Financial Statements, page 135) was $416 Million, which is about $0.32 per share (ie would allow a Fully Franked Special Div of $0.76, ie $1.08 grossed-up).

So if the Distribution was done to maximise FF component, then outcome would be:
a. FF div of $0.76 (plus franking credit of $0.32)
plus
b. Capital Return of $2.46.
This would add up to a total of up to $3.54 for those in zero tax environment.

This comes with the following qualifications as outlined above:
1. Proceeds are "around" not absolute.
2. Intention is to return "majority" to shareholders (not ALL).
3. ATO and ARPA approvals needed.
4. Available Franking Credit balance will have changed in the last 12 months.