Join our daily newsletter At The Bell to receive exclusive market insights
- Media company New Zealand Media and Entertainment (NZM) declares a special dividend of five cents per share, fully imputed and partially franked
- The special dividend follows the pause of NZM’s buyback program, which has progressed “slower than anticipated”
- Last year, the company agreed to undertake an on-market buyback of up to 21.4 million shares for $30 million
- The maximum purchase price for the buyback program will be reduced by the amount of the special dividend, with the buyback amount now being $20.3 million
- NZM shares last traded at $1.04 per share on June 17
Media company New Zealand Media and Entertainment (NZM) has declared a special dividend of five cents per share.
NZM said the dividend would equate to shareholder returns of roughly $9.7 million.
The special dividend follows a pause in NZM’s share buyback program.
In December 2021, the company agreed to undertake an on-market buyback program of up to 21.4 million shares for $30 million. The buy-back program could take up to 12 months to complete, with the period ending mid-December.
To date, NZM has purchased just over four million shares for $5 million at an average purchase price per share of $1.31. This is 17.5 per cent of the maximum purchase price under the buyback program.
NZM has now paused the buyback and has entered restricted trading period.
Due to the “slower than anticipated” progress of the buyback, the company has declared the special dividend.
“The special dividend will include a supplementary dividend payable to shareholders who are not tax residents in New Zealand and who hold less than 10 per cent of the shares in NZM,” the company said.
The dividend will be fully imputed and partially franked.
Following the dividend, the maximum purchase price for shares that may be purchased through the buyback program will be reduced by the amount of the special dividend, with the buyback amount now being $20.3 million.
NZM shares last traded at $1.04 per share on June 17.
