Sampath Bank announces cash and scrip dividend

Sampath Bank yesterday announced a cash and scrip dividend for the 2011 financial year.

It said Board of Directors at its meeting on Tuesday resolved to recommend a full and final dividend of Rs. 9 per share to be paid 50% in the form of cash dividend and balance 50% in the form of scrip dividend subject to withholding tax of 10% being deducted thereon. The proportion in which the shares will be issued is one for 43.06 shares.

On this basis, the total dividend of Rs. 9 per share will cost Rs. 1.4 billion (Rs. 705.8 million in cash and Rs. 705.8 million in scrip).

The proposed total dividend paid will comprise Rs. 44 million out of dividend received (tax free), and Rs. 1.36 billion out of current year’s profits.

The number of shares to be issued under the scrip dividend is 3.642 million. This is on the basis of Rs. 4.50 per share for the existing 156,854,190 shares valued at Rs. 175 per share after providing for the 10% withholding tax.

Sampath Bank shares yesterday rose by Rs. 2.30 to close at Rs. 172.30 after an intra-day high of Rs. 174.

The current stated capital of Sampath Bank Plc is Rs. 2.74 billion. The Bank said there will be no reserves to be capitalised as the consideration will be from the profits for 2011 and out of tax free dividend received.

The dividend is subject to shareholder and regulatory approval. Sampath Bank also said that its Annual General Meeting for the year 2011 will be held on 30 March 2012.