Saudi Telecom Company –stc- announces its Board of Directors’ recommendation to amend the dividends policy based on the recommended increase in stc’s capital.
| Element List | Explanation |
|---|---|
| Announcement Detail | Saudi Telecom Company (stc) announces that based on the Board of Directors’ recommendation dated 11-06-2022 to increase stc’s capital by 150% via granting bonus shares. Therefore, stc’s Board of Directors recommended on 11-06-2022 to the General Assembly to amend the dividends policy –which was approved by the General Assembly on 30-11-2021 – to reflect the new proposed increase in stc’s capital. The amended dividends policy should therefore be as follows:
The dividends policy is based on committing a minimum dividend in an amount of SAR 0.40 per share per quarter, effective from Q4-2021, for 3 years. stc will consider paying additional dividends, subject to stc’s Board of Directors’ recommendation to the General Assembly, after evaluating stc financial position, future expectation and capital requirement. Additional dividends may vary from quarter to quarter based on the company’s performance. The dividends policy will remain subject to change based on the following:
Any material changes in the strategy and business of the company (including the business environment it operates in);
Laws and regulations that are applicable on the Company; and
Any banking, other funding or credit rating covenants that the company may be bound to follow from time to time.
The suggested dividends policy changes is attached.
It is worth noting that the total minimum committed cash dividends will not change based on the suggested amendment in dividends policy, as it will remain at SAR 8 billion per year. |
| Attached Documents |  |
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