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Kinetic Growth Fund Dividend Re-Investment Plan

As previously announced on June 25 2018, Kinetic Growth Fund (KGF) declared a 2 cent per share interim dividend. The said announcement, available on the South Pacific Stock Exchange (SPSE)
30 Jun 2018 10:00
Kinetic Growth Fund Dividend Re-Investment Plan

As previously announced on June 25 2018, Kinetic Growth Fund (KGF) declared a 2 cent per share interim dividend.

The said announcement, available on the South Pacific Stock Exchange (SPSE) website, indicated that KGF shareholders would have the option to re-invest their dividend in additional KGF shares via the Kinetic Growth Fund Dividend Re-Investment Plan (DRP).

Under the DRP:

n Shareholders who prefer to receive their dividend paid in cash do not need to respond.

nShareholders who wish to participate in the DRP must return their election forms to the KGF company secretary by the close of business on July 13, 2018.

This announcement contains a summary of the DRP and an Election Form for shareholders wishing to reinvest dividends in additional KGF shares.

Kinetic growth fund dividend

re-investment plan

Kinetic Growth Fund offers shareholders the option of receiving dividend payments in the form of shares, rather than as a cash payment.

Shareholders who elect to participate in the plan:

nMust reinvest the entirety of the dividend.

n Are exempted from paying brokerage fees, SPSE fees and the Reserve Bank of Fiji (RBF) levy.

nMust return the Election Form to the KGF company secretary. This form must be received no later than the close of business on the day before the close of register date (July 13, 2018).

Shareholders who elect to participate in the plan will receive newly issued shares in the company instead of a cash dividend.

The number of shares received will be equal to the total amount of dividend to which the shareholder is entitled divided by the reinvestment price.

The number of shares will be rounded down to the nearest whole number.

Example: A shareholder who owns 5,000 shares elects to participate in the dividend reinvestment plan.

The shareholder is entitled to $100 dividend. If the reinvestment price is 85 cents, the shareholder would receive 117 shares (100/0.85 = 117.65, rounded down to the nearest whole number of shares).

  1. The reinvestment price has not yet been determined. This example uses 85 cents (the last traded price) to illustrate the dividend reinvestment plan.

The reinvestment price will be the volume weighted average price for the ten trading days immediately following the announcement date ( June 26– July 10, 2018). This reinvestment price is calculated by:

  1. Multiplying the price and number of shares for each trade that happens during the ten trading days;
  2. Adding all the product from step 1; and
  3. Dividing the total from step 2 by the total number of shares traded during the ten trading days.

Any special crossing transactions on the SPSE will be excluded from calculations of the reinvestment price.

If there are no trades during this 10 day period, the reinvestment price will be the last traded price in KGF shares quoted on the SPSE on the last day of the10 day period.

Example: Presume that during the ten-day period there were trades of 10,000 KGF shares at 85 cents, 2000 KGF shares at 86 cents, and 500 KGF shares at 84 cents.

The reinvestment price would be 85.12 cents.

i.e. (10000 * 0.85 + 2000 * 0.86 + 500 * 0.84) / (12500) = 0.8512.

 



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