Fakoyejo OlalekanMTN Nigeria has disclosed that shareholders who vote for its Scrip Dividend Election Plan at its upcoming annual general meeting (AGM) will be given a discount price for its shares.
In a statement released on Thursday, 6 April 2023, to the capital market authority, Nigerian Exchange Limited (NGX), MTN Nigeria said the firm’s shares will be sold at N232.68 kobo per share to shareholders willing to get their dividends in share and not cash payments.
Join our WhatsApp ChannelThe N232.68 kobo is N7.32 kobo lower in price when compared to the N240 market price MTN Nigeria’s share closed trading with on Wednesday, 5 April 2023.
MTN Nigeria is proposing the Scrip Dividend Election Plan to shareholders at the firm’s AGM scheduled on 18 April 2023, as part of its strategy to increase its retained earnings after tax.
According to the company in a statement released last month, it was disclosed that shareholders preferring to receive their dividends in shares will enable the telecommunications company to have enough capital to fund its working capital.
In its capital market corporate update on Thursday, MTN Nigeria stated that it “is pleased to announce the Reference Share Price under the Scrip Dividend Election Plan for the dividend declared by the Company for the 2022 financial year. The Reference Share Price for the new shares to be issued under the Scrip Dividend Election Plan shall be N232.68 per share.
“As indicated in the Notice of the Annual General Meeting to be held on 18 April 2023, the Reference Share Price was determined based on the average closing price of the Company’s shares for the five trading days on Nigerian Exchange Limited starting on 28 March 2023 and ending on 3 April 2023 (both days inclusive).”
The telco also informed shareholders and the stock market investors that: “Qualifying shareholders who intend to make the election for shares are required to obtain the Election Form from Coronation Registrars Limited at 9, Amodu Ojikuru Street, Off Adeola Odeku Street, Victoria Island, Lagos. The Form is also available online at http://mtnnscripdividend.coronationrezisrrars.com. The final date for submission of the Election Form will be 11 April 2023. Qualifying shareholders who do not wish to receive their dividend as additional shares in the Company need not complete the Election Form or take any other steps. For further information on the Scrip Dividend Election Plan, please visit www.mtn.nz/abour-us/investor,“ the statement reads.
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