On 8 May 2018, the Board of Directors of UEM Edgenta Berhad ("UEM Edgenta”) is pleased to announce that with effect from financial year ending 31 December 2018, UEM Edgenta 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”), representing an increase as compared to the previous dividend policy payout ratio of up to 70%.
The increase in payout ratio is a testament of UEM Edgenta’s 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.
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.