Sampath Bank declares high final dividend for 2010
January 28, 2011 11:39 am
Sampath Bank has declared a considerably high final dividend for 2010 at Rs. 6.60 per share, exclusively in the form of a scrip dividend, subject however to a payment of 10% Withholding Tax on the dividend.
This final dividend is in addition to the interim scrip dividend of Rs.3/- per share already paid in September 2010 on the number of shares of 75.8 Mn then existed. However, the proposed final scrip dividend of Rs.6.60 per share will be paid on the increased number of 152.8 Million, consequent upon the two sub division of shares, given effect in 2010.
In a statement issued to the Colombo Stock Exchange (CSE), the bank announced that the new shares to be issued under the proposed scrip dividend will be priced at Rs.300/- per share and accordingly 3,025,599 fully paid new voting shares will be created, which will be allotted to the shareholders on the proportion of their shareholdings. The proposed scrip dividend will be funded entirely out of the profits of the bank for 2010 and hence there will be no capitalization of reserves.