Shareholders of UAC of Nigeria Plc (NGX: UACN) are set to receive a dividend of 65 kobo per ordinary share of 50 kobo each for the financial year ended 31 December 2021.
The dividend proposal contained in the a corporate actions announcement published earlier on Wednesday is subject to appropriate withholding tax.
The share price of UACN closed at N12.10 at the end of trading on Wednesday. This puts the dividend yield for the declared dividend at 5.37% before withholding tax. After the application of 10% withholding tax, the Net dividend payable to each shareholder drops down to 58.5 kobo, giving a dividend yield of 4.83%.
The proposed dividend will be put to shareholders for approval at its next Annual General Meeting. The Company’s Annual General Meeting will be held by Proxy in line with the Guidelines of the Corporate Affairs Commission as well as the COVID-19 Pandemic Safety Protocols at UAC House (12th Floor) 1-5 Odunlami Street, Lagos on Wednesday 22 June, 2022 at 10.00am.
To qualify for the dividend, the shareholder’s name has to appear in the Register of Members as at the close of business on June 7, 2022.
On June 23, 2022 cash dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 7th June, 2022 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.
The Board has approved and are also recommending to shareholders for their approval at the forthcoming AGM, a right of election for Qualifying Shareholders to receive new ordinary shares in the Company instead of the dividend in cash. The election is required to be made on or before June 14, 2022.
The Reference Share Price for the purpose of determining the number of shares due to Qualifying Shareholders who elect for the share option will be a ten-day trading average of the Company’s share price on the floor of the Nigerian Exchange Limited, starting on June 8, 2022.
Shareholders who do not elect for new ordinary shares before or by June 14, 2022 shall receive cash dividend.
Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is available on our Registrars website: https://africaprudential.com/claim-your-dividend-here/, complete and submit to the Registrar or their respective Banks.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur