- MTN Nigeria has announced that some of its shareholders have decided to convert their dividends into shares
- This is a breakthrough for the company as it looks to pile up the cash for its various future investments
- Telecommunication giant recently disclosed that it achieved total revenue of over N2 trillion in 2022
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MTN Nigeria has announced that 5,192 shareholders have decided to convert their dividend cash payments into more shares.
This was disclosed by the company's secretary, Uto Ukpanah, in a statement published on the Nigerian Exchange Limited.
The company also stated that the Securities and Exchange Commission has approved the shareholders' decision.
MTN shareholders decision
The statement reads:
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"MTN Nigeria Communications Plc (MTN Nigeria) is pleased to announce that it has obtained the approval of the Securities and Exchange Commission for the registration of the ordinary shares issued under the recently established scrip dividend election plan (the “Plan”).
"Under the Plan, 5,192 shareholders elected to receive their FY 2022 final dividends in the form of shares, equivalent to 641,047,053 new ordinary shares of 2kobo each at N232.68 per share. This brings the total issued shares of the Company to 20,995,560,103.
"In line with the regulatory guidelines, the Central Securities Clearing System (CSCS) accounts of qualified shareholders will be credited in the coming days. "
What a ‘Scrip Dividend Plan’ means
According to Investopedia, a scrip dividend is when a company gives its shareholders the option of receiving a dividend in either cash or company stock.
While “election” aspect means that shareholders could choose whether they wanted to receive their dividends in the form of cash or additional shares.
Top 20 highest salary-paying companies in Nigeria
Meanwhile, in another report, the list of the highest salary-paying companies in Nigeria has been revealed, with MTN and UBA included.
Dangote Cement, MTN, 8 other companies lose over N630bn in 6 months after Tinubu, CBN naira decision
The list includes 20 companies from the oil and gas sector, including the financial industry.
The ranking was determined by considering both the number of staff employed and the total expenses incurred on staff salaries.