The Nigerian Breweries Plc has proposed a ‘’Scrip Dividend Election Scheme’’, that gives qualified shareholders the opportunity to choose to receive their final dividends in the form of new ordinary shares in the company instead of cash.
This is according to a notification sent by the company to the Nigerian Stock Exchange platform, as seen by Nairametrics.
Outlining the benefits of the scheme, the notice remarked that qualified shareholders who opted to receive new ordinary shares would thus be able to increase the number of shares they hold in the company without incurring capital market transaction costs. In addition, the scheme has the potential of helping the company to retain cash (for working capital purposes) that it would have paid out in dividends.
It is pertinent to note that ‘Qualified Shareholders’ in this context are those, whose names appear in the company’s register of members as at close of business on the 10th of March, 2021.
What you should know:
- Recall that Nigeria Breweries Plc had earlier announced a profit of N7.53 billion in FY 2020. Sequel to this, a final dividend of 69 kobo per share was proposed by the Board.
- Qualified shareholders who wish to opt for the scheme are expected to complete an Election form (available HERE) and return same to First Registrars and Investors Service Limited on or before the 12th of April, 2021.
- It is pertinent to note that the number of new ordinary shares to be received by qualifying shareholders who elect for new shares, will depend on their respective cash dividend entitlements (less withholding tax) and the reference share price.