RMH’s shares dip by as much as 38% as they went ex-dividend
This after group given approval to declare a special dividend of 80 cents a share
RMB HOLDINGS (RMH) share price declined by more than 38 percent on the JSE yesterday morning after the investment holding company’s shares went ex-dividend yesterday.
This comes after the group was given approval by the exchange control to declare a special dividend of 80 cents a share, which equals to R1.13 billion out of income reserves, on April 21.
The group also announced that the special dividend would be subject to a dividend withholding tax at a rate of 20 percent, which would result in a net special dividend of 64c a share.
The shareholders are expected to receive a total of R903.49 million after tax.
RMH announced on April 21 that the last day to trade in order to participate in this special dividend was on Tuesday and the shares would commence trading ex-dividend yesterday. The group expects to make the special dividend payment to its shareholders on Monday.
The special dividend declaration resulted after RMH said the development of a new hub for business, entertainment, retail and residential living in Bucharest (Bucharest development) were not met by the long stop date of March 31.
It said as result the RMH board would be returning the capital committed to Atterbury Europe and the Iulius Group, earmarked for the Bucharest development to shareholders as a special dividend.
RMH, which unbundled its 34 percent stake in financial services group FirstRand in June last year to unlock about R5.41bn in value for its shareholders, was left with its property portfolio after the unbundling.
The unbundling ended a 27-yearold relationship between the two financial institutions.
The group currently holds a 27.5 percent stake in Atterbury, a 37.5 percent in Atterbury Europe, a 20.3 percent in Divercity and various holdings in Integer Properties.
Mike Gresty, an analyst at Anchor Capital, and Nesan Nair, a senior portfolio manager at Sasfin Securities, both said said RMH went ex-dividend yesterday, leading to a decline in the group’s share price.
“The reason for RMB Holdings’ share price to be down by so much is because they went ex-dividend today.
“The dividend was 80c,” Gresty said.
“As a result, the share price fell to a day-low of R1.15 a share, down from Tuesday’s closing price of R1.97.
RMH said it received formal notification yesterday that the Public Investment Corporation (PIC) had disposed of an interest in the ordinary shares of RMH, such that the total interest in the ordinary shares of RMH held by PIC amounted to 9.59 percent of the total issued ordinary shares of RMH.
“As required in terms of section 122(3)(a) of the Companies Act, the company has filed the required notice with the Takeover Regulation Panel,” the group said.