MTN shareholders given choice to convert dividend or take cash
Telecommunications Giant, MTN Ghana has secured approval to give shareholders the option to receive their final dividend payment of GHS0.124 per share for the 12-month period ended 31 December 2022, in cash or shares.
The new method which was approved at the company’s fifth Annual General Meeting (AGM) on Tuesday, 30th May, 2023, through a ‘scrip dividend’ gives them an opportunity to increase their stake in the company without incurring any capital market-related transaction costs such as fees to brokers.
A release from the Ghana Stock Exchange noted that, “The minimum requirement to qualify for the scrip dividend or new ordinary shares is an entitlement to a gross final dividend equivalent to a one hundred new ordinary shares (GHS129.35 or more) and subsequently an equivalent in blocks of 10 shares (incremental of GHS12.93 per block). No fractional new ordinary shares will be issued,” the released further clarified.
By scrip dividend, investors are being given the option to receive additional shares instead of a cash dividend.
The release further explained that in line with the computation mechanism of the Scrip dividend guideline, every qualifying shareholder may choose to receive a new share for every cash dividend forgone.
It noted that, however that, where no selection is made, the default option will be payment in cash.
“To elect to receive your final dividend in new ordinary shares, a qualifying shareholder must complete the scrip election/mandate form and submit to the Registrar (Central Securities Depository) no later than 6 June 2023,” it added.
Source: Ghana Business
