UEM Edgenta increases dividend payout ratio

PETALING JAYA: UEM Edgenta Bhd will adopt a new dividend policy of at least 50% and up to 80% dividend payout ratio based on the reported consolidated net profit attributable to shareholders after non-controlling interest (patanci), with effect from the financial year ending Dec 31, 2018.
This is higher than the previous dividend policy payout ratio of up to 70%.
UEM Edgenta told Bursa Malaysia that the revised dividend policy also provides a base, whereby at least 50% of patanci will be paid as dividend. It is envisaged that dividend payout will remain to be on a semi-annual basis.
It said the increase in payout ratio is a testament of its sound earnings visibility, backed by long-term contracts in the healthcare and infrastructure sectors. The new dividend policy will provide sustainable returns to shareholders while instilling financial discipline to achieve an efficient capital structure.
"To further enhance shareholders' value, the board may also from time-to-time, consider special dividends in the event of surplus cash after considering the future cash requirements and business plans," it said.
The revised dividend policy reflects the board's current views on the group's financial and cashflow requirements and growth/expansion plans.
"The board will re-evaluate and review the dividend policy on an ongoing basis, taking into consideration UEM Edgenta's financial position, including gearing level, regulatory environment, macro-economic outlook and business prospects," it added.