Straits Trading to pay special dividend early, ratify shareholder approval at a later date
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Vivienne Tay
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STRAITS Trading has decided it is in the interest of shareholders to first proceed with its proposed special dividend, before formally garnering shareholder approval at an extraordinary general meeting.
The decision came after the conglomerate-investment company received an irrevocable undertaking from a shareholder with sufficient voting rights to pass the resolution for the proposed distribution, according to a bourse filing on Thursday (Sep 15).
This undertaking would allow the company to ratify shareholders’ approval at a later date, but no later than the next annual general meeting.
Straits Trading obtained the irrevocable undertaking from Tecity, a controlling shareholder of The Cairns, which directly holds more than 50 per cent of Straits Trading’s shares.
On Aug 14, Straits Trading declared a special dividend via distribution in specie, distributing either ESR shares or Straits Trading shares to entitled shareholders. The special dividend came after the company posted strong first-half 2022 results driven by the divestment of ARA Asset Management to ESR Group.
Entitled shareholders may choose to receive 145 ESR shares or 180 new Straits Trading shares for every 1,000 Straits Trading shares owned.
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Chew Gek Khim, executive chairman of Straits Trading, had said that the special dividend serves to reward shareholders for their continued support and allow them to participate further in the company’s growth.
Straits Trading shares closed 1.3 per cent or S$0.04 higher at S$3.22 on Thursday.
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