The 30c a share payout on February 14 will be the group’s first dividend since 2008.
“We didn’t plan it for Valentine’s day but that’s how it’s worked out,’’ chairman Rob Hewett said. “It will be like an “I love you’ to the shareholders from the company, and a thank you for them staying with the company over these times.’’
The dividend will take up $34.5 million of the $267m paid by Chinese group Shanghai Maling for the 50% shareholding in Silver Fern’s operating business.
It comes from the $57m held back in the Silver Fern Farms Co-operative. The co-op has spent $5.5m redeeming Supplier Investment Shares, and will have a $17m cash balance after the dividend is paid. That money will be available for ongoing redemption of eligible rebate shares, running costs of the co-op, and potentially future distributions.
The $210m invested in the operating company has been used to pay down the group’s core debt, leaving about $90m for investment, Hewett said.
With the capital injection, the directors were confident the business would be trading profitably from here on _ following the trading loss in the last September 30 year _ and have a dividend policy of paying out a minimum ratio of 30% of after tax earnings as dividend, and a target figure of 50%.
The February 14 dividend will be paid to owners of Ordinary and Rebate shares as at the close of trading on January 30. It will not carry tax imputation credits for shareholders.
