Dividend Distribution Policy
Title :
Policy for Distribution of Dividends
Content :
Policy for Distribution of Dividends
- Preamble:
This policy sets out the framework and principles governing how Gulf Hotels (Oman) Company Limited SAOG decides, announces, and distributes dividends. It is intended to enhance financial transparency and support shareholder investment decisions in accordance with Circular 3/2025 issued by MSX.
- Definitions:
FSA – Financial Services Authority in the Sultanate of Oman.
MSX – Muscat Stock Exchange.
MCD – Muscat Clearing and Depository Company SAOC.
Company - Gulf Hotels (Oman) Company Limited SAOG.
Board of Directors - Board of Directors of Gulf Hotels (Oman) Company Limited SAOG.
Chairman – Chairman of Board of Directors of Gulf Hotels (Oman) Company Limited SAOG.
Deputy Chairman – Deputy Chairman of Board of Directors of Gulf Hotels (Oman) Company Limited SAOG.
Shareholders – Shareholders of Gulf Hotels (Oman) Company Limited SAOG.
- Legal & Regulatory Basis:
The policy is prepared under:
· MSX Circular 3/2025 – requiring listed companies to prepare and disclose a dividend distribution policy in accordance with prescribed guidelines.
· Commercial Companies Law of Oman and related securities laws applicable to joint-stock companies.
· Other applicable regulations, including the recent FSA directive on dividend payment timelines.
The policy will be on the MSX disclosure platform following approval by the Board of Directors.
- BOD Decision & Effective date:
The provisions of this Policy would come into effect immediately upon its formal approval by the Board of Directors of Gulf Hotels (Oman) Company Limited SAOG.
- Dividend to Shareholder Intent & Dividend Philosophy:
The Company aims to pay sustainable returns to its shareholders by balancing:
- Shareholder income expectations with
- Long-term financial strength and
- Capital reinvestment needs for hotel expansion, maintenance, and strategic
projects.
Dividends are distributed only when consistent with profitability, cash flow availability, and prudent financial management.
- Dividend Interval - Timing and Frequency:
The Board may recommend dividends on:
· Annual basis (typically after audited year-end results)
· Interim basis (e.g., semi-annual or quarterly)
Decisions on timing depend on financial performance and strategic outlook.
The policy adheres to best practices and reflects the Company’s commitment to regular, predictable dividends – subject to availability of distributable profit, retained earnings, cash flow and subject to necessary regulatory / Shareholders’ General Meeting approval.
- Dividend Distribution Strategy:
The Company may distribute:
- Cash Dividends – direct cash payments to shareholders; and/or
- Bonus Shares – issuance of additional shares as an alternative to cash distribution
The type selected in any period will be communicated clearly in the dividend announcement.
- Company’s Financial Position & Dividend Determination Criteria:
The Board will assess the following when recommending dividend amounts:
- Net profits after tax, retained earnings, other distributable surplus;
- Liquidity and working capital requirements;
- Debt levels and financial covenants;
- Historical dividend levels and investor expectations;
- Regulatory constraints and governance principles.
Growth Strategy-
- Future capital expenditure and growth strategy (particularly hotel upgrades and expansion or investment);
Industry Update –
- Industry outlook and market conditions (tourism trends, economic environment);
- Economic conditions
- Macro environment
- Competitive advantage update
- Dividend Distribution plan- Eligibility, Record & Payment Dates:
(i) Record Date: Set by the Board of Directors, identifying eligible shareholders. If not set by the Board of Directors, then the record date shall be the date of General Meeting of shareholders, that approves the dividend recommendation.
(ii) Ex-Dividend Date: Determined in line with MSX trading rules.
(iii) Payment Date: Distributed within 15 days of record date or such other period as per the timeline required by MSX / MCD / FSA or other relevant regulators.
- Dividend Announcement Plan:
Dividend announcements will include:
· Dividend per share (DPS)
· Cash or stock dividend
All announcements shall be made through MSX disclosure platform.
- Dividend Approval:
The General Meeting of shareholders will consider and approve dividend recommendation by the Board of Directors.
- Policy Rationale:
Reasons behind interval and payment plan, where ever applicable shall be disclosed along with decision of dividend recommendation.
- Amendment and Review:
This policy may be reviewed annually or as may be necessary, due to regulatory updates, changes in the Company’s financial situation, or evolving capital market practices.
The Board will take into consideration a number of financial and non-financial factors as mentioned under Para 8 of this policy, it will not be bound to take such decision on any fixed financial ratios.
- Force Majeure events:
Notwithstanding any provisions contained in this policy, the Board of Directors reserves the right to suspend, reduce, defer or amend, its dividend distribution recommendation in response to extraordinary economic conditions, operational requirements, regulatory changes or force majeure events.
- Contact Information:
For further inquiries regarding the dividend policy or distribution process, shareholders can contact:
Compliance Officer / Investor Relations Officer: Yogish Mallya,
Mobile No + 968 99341785
Signed on behalf of the Board of Directors of
Gulf Hotels (Oman) Company Limited SAOG
Chairman Director
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