Friday, 26 April 2019
KPS Declares Special Dividend Of 32.6 sen Following Splash Stake Sale
KUALA LUMPUR (April 26): As promised to shareholders earlier, Kumpulan Perangsang Selangor Bhd (KPS) has declared a special one-off dividend of 32.6 sen per share, following its divestment of its 30%-stake in Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).
KPS said the dividend, totalling RM175.19 million, will be paid on May 28. The ex-date is May 13.
The special dividend is in addition to the group's final dividend of 4.25 sen per share, KPS said in a statement.
The group had indicated last year that it was considering three options as to how the proceeds from the Splash divestment would be utilised, one of which was for declaring a special dividend. The other two options were paring down borrowings and funding future business expansion.
In August last year, Pengurusan Air Selangor Sdn Bhd made an offer to buy out Splash from KPS’ 30%-owed associate company Syarikat Pengeluar Air Selangor Holdings Bhd (Splash Holdings) for RM2.55 billion in cash.
Gamuda owns a 40% stake in Splash Holdings while Sweet Water SPV Sdn Bhd, a private vehicle of businessman Tan Sri Wan Azmi Wan Hamzah, owns the remaining 30%.
On April 24, Splash Holdings had received a sum of RM1.9 billion from Air Selangor being the first tranche payment for the Splash divestment, from which KPS is entitled to RM570 million.
“Returning capital to shareholders in the form of this 32.6 sen special dividend is a reflection of KPS’s recent results of its corporate exercise, strong financial position and our confidence in the company’s financial future. It is also a way of rewarding our shareholders for their continuous support on the company’s corporate exercise and strategic initiatives.
"Our excess capital remains at a level which will afford us the financial flexibility to grow our business and ensure a healthy balance sheet.” said Ahmad Fariz Hassan, the managing director and chief executive director of KPS.
“With the completion of Splash divestment, we can now be fully focused in executing our business transformation and value creation plans to unlock the full potential of our core businesses, thus on track to create long term value and generate greater sustainable returns for Perangsang Selangor and all our shareholders,” he added.
KPS' share price fell four sen or 2.58% to close at RM1.51, giving it a market capitalisation of RM811.46 million. Some 776,100 shares were traded.
