MTN Nigeria has announced the price for its shares per unit under the scrip dividend plan for interested shareholders saying it had reduced its share price to N232.68.
The company stated in a corporate notice submitted to the Nigerian Exchange Limited on Thursday that the reference share price would be N232.68, which was less than the N240 per unit value of its shares at the close of trading on Wednesday.
In March, MTN put forth a scrip dividend proposal that would let interested shareholders choose to receive new company common shares in lieu of cash dividends.
According to the business, “The reference share price was determined based on the average closing price of the company’s shares for the five trading days on Nigerian Exchange Limited beginning on 28 March 2023 and ending on 3 April 2023 (both days inclusive).”
The company claimed that the scrip plan would be advantageous because it would allow for the retention of cash for working capital and other general corporate purposes rather than having it distributed as dividends.
