Nigeria’s leading telecommunications company, MTN Nigeria Communication (MTN Nigeria) Plc has allotted 641.05 million ordinary shares of 2.0 kobo each to shareholders that elected to convert their cash dividends to equity stakes.
Regulatory report at the Nigerian Exchange (NGX) indicated that MTN Nigeria allocated 641.047 million ordinary shares to shareholders under its recent scrip dividend election scheme.
The allotted shares were added to the total outstanding shares of MTN Nigeria at a listing price of N232.68 per share, representing immediate market value of N149.15 billion.
The supplementary listing increased the total issued and fully paid up shares of MTN Nigeria from 20.35 billion to 20.996 billion ordinary shares of 2.0 kobo each.
The Nation had reported that MTN Nigeria had decided to explore a cash dividend conversion arrangement that allows shareholders to convert their cash dividends to shares.
MTN Nigeria had declared a final dividend of about N204 billion for the 2022 business year, representing a final dividend per share of N10. This increased the total dividend payout for the 2022 business year to about N318 billion or N15.60 per share, after the company had paid interim dividend of N113.99 billion or N5.60 per share during the year.
The final dividend was paid electronically on April 20, 2023 to shareholders on the register of the company by the close of business on March 27, 2023.
The two-way optional dividend arrangement was presented and approved by shareholders at the April 18, 2023, allowing shareholders to make their choices ahead of the April 20, 2023 dividend payment date.
MTN International (Mauritius) Limited, which holds 72.83 per cent controlling equity stake in MTN Nigeria, was expected to be the biggest beneficiary of the dividend conversion option.
Key extracts of the audited report and accounts of MTN Nigeria for the year ended December 31, 2022 showed double-digit growths across key performance indicators.
Total revenue increased by 21.6 per cent to N2.01 trillion. Earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 22 per cent to N1.1 trillion. EBITDA margin thus inched up by 0.2 percentage points to 53.2 per cent. Profit before tax rose by 22.3 per cent to N534 billion. After taxes, net profit improved by 20.2 per cent to N358.9 billion. Thus, earnings per share (EPS) rose by 21.3 per cent to N17.79 kobo in 2022.
Total assets rose from N2.26 trillion in in 2021 to N2.72 trillion in 2022. Total liabilities rose from N2 trillion in 2021 to N2.38 trillion in 2022. Shareholders’ funds increased from N264.99 billion to N334.24 billion.
SOURCE: THE NATION
