Scancom PLC, owners of MTN Ghana has disclosed its plans to distribute a final dividend to its shareholders for the 12-month period ending 31st December 2022 in a resolution made at its recent Board Meeting.
According to the company, the dividend, set at GHS0.124 per share, signifies the company’s commitment to rewarding its investors for their steadfast support and confidence.
To qualify for the scrip dividend or new ordinary shares, a minimum requirement must be met. Shareholders must have an entitlement to a gross final dividend equivalent to a hundred (100) new ordinary shares, amounting to GHS12.935 or more.
This eligibility criterion sets the stage for broader participation, ensuring that those who have consistently invested in MTN Ghana are rewarded in a meaningful way.
It is important to note that the allocation of new ordinary shares will occur in blocks of 10 shares, with each block incrementally valued at GHS1.293. To maintain integrity and fairness, fractional new ordinary shares will not be issued. Only whole numbers will be allotted, guaranteeing equitable distribution among qualifying shareholders.
However, what sets this dividend announcement apart is the innovative approach adopted by MTN Ghana. Subject to the adoption of Special Resolution 3 at the upcoming Annual General Meeting (AGM) scheduled for 30th May 2023, qualifying shareholders will have the unique opportunity to choose between receiving the final dividend in cash or in the form of new ordinary shares. This strategic move aims to provide greater flexibility and value enhancement for investors, aligning their interests with the company’s long-term growth objectives.
Additionally, MTN Ghana has placed significant emphasis on empowering its investors with choice. In accordance with the computation mechanism defined in Special Resolution 3 or the Scrip dividend guideline, every qualifying shareholder is entitled to elect to receive a new share for every cash dividend forgone.
Unique Opportunity for Shareholders
This unique opportunity allows shareholders to actively participate in the company’s growth story and optimize their investment returns based on their individual preferences and expectations.
To exercise the option of receiving the final dividend in the form of new ordinary shares, qualifying shareholders are required to complete the scrip election/mandate form and submit it to the Registrar, Central Securities Depository, no later than 6th June 2023.
This proactive engagement with shareholders ensures a streamlined process and effective implementation of their chosen dividend option.
MTN Ghana’s strategic decision to introduce a choice-based dividend structure not only reflects the company’s commitment to investor inclusivity but also acknowledges the diverse investment objectives and risk profiles of its shareholders. By providing shareholders with the flexibility to select their preferred dividend option, the company strengthens its relationship with its investors while reinforcing its dedication to delivering long-term value.
The introduction of the scrip dividend option aligns with MTN Ghana’s broader growth strategy and commitment to prudent capital management. By offering shareholders the choice between cash and new ordinary shares, the company maintains the necessary financial flexibility to pursue strategic initiatives while simultaneously rewarding its loyal shareholders.
As MTN Ghana embarks on this new dividend journey, it iterates its steadfast commitment to upholding the highest standards of corporate governance, transparency, and investor relations.
Shareholders can rely on the company’s unwavering dedication to creating sustainable shareholder value as they consider their dividend preferences.
MTN Ghana’s resolution to pay a final dividend for the 12-month period ended 31st December 2022 at a rate of GHS0.124 per share demonstrates the company’s strong financial performance and its focus on generating attractive returns for its shareholders.
The solidifies MTN Ghana’s position as a market leader in the Telco industry and investor-friendly entity, fostering long-term relationships with its valued shareholders.