Altron shareholders in dividend windfall - TechCentral

Altron shareholders in dividend windfall

Image: Steve Buissinne

JSE-listed technology group Altron has declared a special dividend of 96c/share after it successfully spun off Bytes Technology Group as a separate listing in London and Johannesburg and ended up with more cash than it expected.

As part of the “de-merger”, Altron retained about 9% of the convertible notes issued to settle the dividend tax that arose on the distribution to shareholders for tax purposes.

However, it overestimated the dividend tax liability. It therefore has additional cash on its balance sheet and, because the intention of the Bytes de-merger was to create and return value to shareholders, Altron’s board has now resolved to return the cash in the form of a special dividend.

The 96c gross special dividend will be paid to shareholders on 17 May. The dividend is subject to tax at 20%, resulting in a net dividend of 76.8c/share.

Altron’s shares closed up 5.7% on the news at R11.54 apiece.  — © 2021 NewsCentral Media

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