For interested shareholders, MTN Nigeria has disclosed the price per unit for its shares under the scrip dividend scheme. The company said that its reference share price will be N232.68 in a corporate notice submitted to the Nigerian Exchange Limited. This price was less than its share value at the close of trade, which was N240 per unit.
In March, MTN put out a scrip dividend proposal that would let interested shareholders choose to obtain new firm common shares in lieu of cash dividends. According to the business, “The reference share price was derived based on the average closing price of the company’s shares for the five trading days on Nigerian Exchange Limited beginning on 28 March 2023 and ending on 3 April 2023 (both days inclusive).”
The firm said that the scrip plan would be beneficial as the cash, which would otherwise be paid out in dividends, and would be retained for working capital and other general corporate purposes.