HNB splits Rs. 6 final dividend in to cash and scrip

HNB yesterday announced that its final dividend of Rs. 6 per share will consists of Rs. 3 per share in cash and an equal amount as a scrip dividend.

The decision to this effect was made by the HNB Board of Directors during their meeting on Monday.

The final dividend is for both voting and non-voting shareholders.

In December HNB paid a Rs. 1.50 per voting and non-voting share as interim dividend. HNB has 311.44 million voting shares in issue and 77.2 million non-voting.

As per the scrip dividend announced, 5.68 million new voting shares and 2.2 million non-voting shares will be issued. This is after providing for 10% withholding tax. HNB also said the number of voting and non-voting shares will be varied since it is required to accommodate new shares to be allotted under the ESOPs in progress from 21 February 2012 to the effective ex-dividend date to be notified.

The amount to be capitalised (net of withholding tax) is Rs. 841 million on account of voting shares dividend and Rs. 205.6 million for non-voting dividend.

HNB voting share was trading at Rs. 148 on 17 February being the last trading day before the Board meeting whilst non-voting was trading at Rs. 94.40.

Based on this, the proportion with which shares are to be issued will be 1 for 54.8 for voting shareholders and 1 for 34.9 for non-voting shareholders.

The final dividend announced is subject to shareholder and regulatory approval. HNB’s Annual General Meeting for 2011 has been fixed for 30 March, 2012.

The cash dividend will be paid on 11 April, 2012.

HNB said its Board is satisfied that the Bank could immediately after the dividend payment meet the solvency test in terms of the Companies Act. The stated capital of HNB is Rs. 11.45 billion.