Scangroup is planning to pay its shareholders a special dividend of Sh4.7 per share or a total of Sh2 billion later in the year from its 60 percent sale stake in Kantar Africa.
The firm confirmed this through a response to a question by a shareholder, Peterson Mutwiri, who asked whether the dividends would be paid this year or next year.
“The intent is to pay the special dividend before the end of 2020. This is assuming we deliver to all the conditions precedent and achieving completion of the transaction before the end of June 2020,” Scangroup said as a response.
The Nairobi security exchange-listed firm said it has a net proceeds of Sh5 billion and is planning to use 40 percent of this (Sh2 billion) to pay the special dividend.
“The funds received from the disposal will result in a cash surplus in the company…as the independent Kantar Transaction Committee negotiated not to give any operational warranties in the report of the disposal such cash remains unencumbered,” said Scangroup.
“The board will review the optimal use into consideration potential expansion, capital needs and cash flows, but expects that at least 40 percent of the proceeds to be returned to shareholders in the form of a special dividend.”