MTN Nigeria has reduced its share price to N232.68 in a bid to persuade shareholders to waive dividend payments for its Scrip Dividend Election Plan announced three weeks ago.
This is N7.32 kobo or 3.14 per cent below the current market price of MTN Nigeria’s stock which trades at N240 per share as of Wednesday.
In March, MTN Nigeria had stated that one of the benefits of subscribing to the Scrip Dividend Election Plan was that the shareholders will get to receive the shares at a discount compared to the market price.
The y’ello network also stated it will enable the company to retain more cash which in turn will be disbursed to finance its working capital, reducing its dependence on loans.
In the statement, MTN Nigeria said: “MTN Nigeria Communications Plc (“MTN Nigeria” or the “Company”) 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.
READ ALSO: MTNN proposes cash for shares during dividend payout
“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.
“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”.
It would be recalled that the telecom giant had reported three weeks ago that MTN Nigeria was planning to convince shareholders into accepting shares in exchange for dividends instead of cash.
The telecommunications company asked shareholders to vote for its Scrip Dividend Election Plan at the Annual General Meeting to be held on April 18, 2023, which will enable the telco to retain its net profit instead of spending its cash reserves on dividend payout.
With two weeks left to the shareholders’ meeting, MTN Nigeria said shareholders that vote to receive their dividends in form of shares will be charged N232.68 per