UEM Edgenta adopts higher dividend policy


  • Corporate News
  • Wednesday, 09 May 2018

Shares in UEM Edgenta closed one sen higher to RM2.85 yesterday.

PETALING JAYA: UEM Edgenta Bhd is adopting a new dividend policy of at least 50% and a dividend payout ratio of up to 80%.

This is based on the reported consolidated net profit attributable to shareholders after non-controlling interest (Patanci), with effect from Dec 31, 2018.

It is higher than the previous dividend policy payout ratio of up to 70%, the total asset solutions provider said in a filing with Bursa Malaysia.

“The revised dividend policy also provides a base, whereby at least 50% of the Patanci will be paid as dividend. It is envisaged that the dividend payout will remain to be on a semi-annual basis,” it said.

UEM Edgenta said the increase in payout ratio is testament to the company’s sound earnings visibility, backed by long-term contracts in the healthcare and infrastructure sectors.

“The new dividend policy will provide sustainable returns to shareholders while instilling financial discipline to achieve an efficient capital structure.

“To further enhance shareholder value, the board may also from time to time, consider special dividends in the event of surplus cash after considering the future cash requirements and business plans.”

The company added that the revised dividend policy reflected the board’s current views on its financial and cashflow requirements and expansion plans.

“The board will re-evaluate and review the dividend policy on an ongoing basis, taking into consideration UEM Edgenta’s financial position, including gearing level, regulatory environment, macro-economic outlook and business prospects,” it said.

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Business , UEM Edgenta , dividend , policy

   

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