FCL 1:3 bonus

Press, 12 February 1986, Page 37

FCL 1:3 bonus

Fletcher Challenge, Ltd, directors have declared an interim dividend of 10.5 c a share and a one-for-five bonus issue. The chairman, Sir Ronald Trotter, said that directors had reviewed the group’s forward projections and view the future of the company with confidence. “It is expected that the dividend per share will be maintained at 23c for 1986 c, which is effectively an increase of 25.2 per cent.” Comment on FCL’s profit expectation for the year will be given when the half-year results are released following the board meeting on March 11. The bonus issue will be made to ordinary shareholders registered at 4 p.m. on February 28. The bonus shares will not qualify for the company’s 1986 interim dividend re-investment plan or the interim dividend, but will rank equally with existing ordinary shares afterwards. The bonus shares will accrue to holders of 16 per cent specified preference shares but, under the terms of their issue, cannot be alloted until the preference shares are redeemed. The conversion rate, with this and last year’s bonus shares, means that, on redemption, each 16 per cent specified preference share will qualify for 3.2 ordinary shares. The interim dividend represents a 33 per cent increase on last year’s interim dividend pay-out as a result of last year's one-for-three bonus issue. The dividend will be paid on March 24 to holders of shares for which no application under the dividend reinvestment plan is received by 4 p.m. on February 28. Shares in lieu of dividends will be issued on March 24 to shareholders entitled to participate in the dividend reinvestment plan at 4 p.m. on February 28. The issue price of these shares will be determined on the basis of 90 per cent of the weighted average market price of FCL shares sold on the New Zealand Stock Exchange from February 19 to 25 inclusive.