Straits Trading declares special dividend; shareholders to get dividend in shares

STRAITS Trading has declared a special dividend, distributing either ESR shares or Straits Trading shares to entitled shareholders.

This special dividend comes after a strong H1 2022 results driven by the divestment of ARA Asset Management to ESR Group. The divestment value was recognised at S$1.1 billion, an internal rate of return of 18.2 per cent or 3.7 times equity multiple of the original cost of investment.

Entitled shareholders may elect to receive 145 ESR shares or 180 new Straits Trading shares for every 1,000 Straits Trading shares owned. The distribution rate is about S$0.50 per share based on the HK$19.86 closing price of ESR shares on Aug 12. Shareholders will have to approve the distribution in an extraordinary general meeting which will be convened.

"With the successful divestment of ARA, this special dividend serves to reward our shareholders for their continued support and enables them to participate further in our growth. We are continuing our track record of rewarding shareholders with a special dividend whenever substantial shareholder value is unlocked," said Chew Gek Khim, executive chairman, Straits Trading.

Shares of Straits Trading last closed up 1.3 per cent or S$0.04 to S$3.06 last Friday (Aug 12).

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