19 June 2020
Absa Bank Kenya PLC (ABK) wishes to notify shareholders, stakeholders and the general public that its majority shareholder, Absa Group Limited (AGL) has waived a portion of its final divided out of 2019 distributable profits.
The ABK shareholders during the Annual General Meeting (AGM) held on 19th June 2020, approved the final dividend of KES0.90 per share. This is in addition to the interim dividend of KES0.20 per share which was paid out in October 2019, bringing the total dividend out of 2019 distributable profits to KES1.10 per share.
AGL, which has a 68.5% stake in ABK, is entitled to a total dividend payout of KES3.3billion. However, AGL has decided to waive KES1.225 billion, representing 36.5% of their 2019 final dividend entitlement. The waiver is to ensure that ABK remains well-positioned for growth in the medium to longer term as it embeds the new brand that was launched early this year in the Kenyan market. The effect of the waiver is to further strengthen the capital position of ABK.
The waiver of a portion of the dividend is only by the majority shareholder (AGL) and as such the minority shareholders have been paid their final dividend in full.
The waiver of a portion of the dividend is irrevocable, unconditional and does not in any manner whatsoever alter the shareholding of AGL or that of minority shareholders.
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