Announcement
CORPACT: NZM: NZME declares special dividend
08:30am
NZM
20/06/2022 08:30
CORPACT
PRICE SENSITIVE
REL: 0830 HRS NZME Limited
CORPACT: NZM: NZME declares special dividend
NZME declares special dividend
AUCKLAND, 20 June 2022: NZME Limited (NZX: NZM, ASX: NZM) ("NZME") has today
declared a special dividend.
On 17 December 2021, NZME advised the market that it would undertake an
on-market buyback programme for up to 21,428,571 shares for an aggregate
purchase price of up to $30 million following the release of its annual
results in February 2022. The buyback programme may run for up to twelve
months, with that period ending on 16 December 2022.
To date NZME has purchased 4,012,524 shares through the buyback programme for
an aggregate purchase price of $5,249,515, being an average purchase price
per share of $1.31. This equates to 17.5% of the maximum aggregate purchase
price under the buyback programme of $30 million.
The buyback programme is currently paused as NZME has entered its restricted
trading period as set out in the NZME Securities Trading Policy. Given the
slower than anticipated progress of the buyback programme to date, the Board
have declared a special dividend of 5.0 cents per share, equating to $9.7
million. The aggregate amount of the special dividend, when combined with
the purchases under the buyback programme to date, brings the total to $15
million. The dividend will be paid on 12 July 2022 to shareholders on the
register at 5pm on 28 June 2022. The special dividend will include a
supplementary dividend payable to shareholders who are not tax resident in
New Zealand and who hold less than 10 percent of the shares in NZME (and who
are subject to non-resident withholding tax on dividends of 15 per cent or
more). The special dividend will be fully imputed and partially franked.
Please refer to the attached Distribution Notice for more detail.
This special dividend may result in NZME paying dividends that exceed the
30-50% of free cashflow target specified in NZME's Dividend Policy. Pursuant
to NZX Listing Rule 3.14.4 NZME discloses that the rationale for paying a
dividend otherwise than in accordance with its Dividend Policy is that this
special dividend will provide a return of capital to shareholders given the
slower than anticipated progress of the buyback programme.
As a result of the payment of the special dividend, the maximum aggregate
purchase price for shares that may be acquired by NZME through the buyback
programme will be reduced by the amount of the special dividend, with such
amount now being $20.3m million, including the $5.3 million already
purchased.
NZME's Dividend Policy is unaffected by this special dividend. The NZME
Board will assess the interim dividend as part of the interim results in
August 2022.
ENDS
Authorised by: The Board of NZME Limited
Contact:
Investors:
David Mackrell
Chief Financial Officer
+64 21 311 911
David.mackrell@nzme.co.nz
Media:
Kelly Gunn
GM Communications
+64 27 213 5625
Kelly.gunn@nzme.co.nz
About NZME
New Zealand Media and Entertainment (NZME) is an integrated media company,
with a portfolio of market leading news, entertainment and real estate brands
strategically positioned across a network of digital, print and audio
platforms.
With a combined audience of 3.4 million New Zealanders*, NZME supports
commercial partners to grow customer engagement with a data driven, audience
and customer centric approach. NZME is listed on the NZX Main Board (code
NZM) with a foreign exempt listing on the ASX (code NZM).
*SOURCE: Nielsen CMI Fused Q1 21 - Q4 21 January 2022 AP15+
End CA:00393981 For:NZM Type:CORPACT Time:2022-06-20 08:30:33
Click here
to view related attachments.
