MTN shareholders given option to convert dividend or take cash
Ghana’s telecommunication giant, MTN Ghana, has resolved to pay a dividend of GHS0.124 per share for the final dividend for the 12-month period ended 31 December 2022.
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Much as the decision to pay was agreed at the company’s board meeting on February 27, this year, payment is subject to the adoption at its Annual General Meeting (AGM) scheduled for tomorrow.
Consequently, qualifying shareholders may receive the final dividend either in cash or in new ordinary shares, release from the Ghana Stock Exchange (GSE) said.
“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.