The board of Zambia’s largest mining explosives company, AEL Zambia Plc has announced an interim dividend of K2 per share to be paid to shareholders of its LuSE listed shares.
“At the Board Meeting held on 23 September 2019, an Interim Dividend of 2.0 Kwacha per share for the half-year ended 30 June 2019 was declared by the Board of Directors of AEL Zambia PLC”, read a statement by Francois Van Niekerk, the company’s Financial Director issued on 1st November 2019 by order of the Board.
With the company’s shares trading at K20 per share, it’s market capitalization currently stands at K408 million. The explosives company which has offices in the heart of the mining district in Mufulira, has over 20 million shares listed on the LuSE.
The AEL security is one of the premium stocks on the LuSE with a price to earnings ratio of 4.75. In the week of the dividend announcement, offers of K22.50 for the stock were made signaling the desire of investors to snap up this asset which has paid a consistent dividend for the last 5 years.
“In accordance with the requirements of the Securities Act No. 41 of 2016 and the Listing Rules of the Lusaka Securities Exchange, Notice is hereby given that the Interim Dividend shall be payable to shareholders registered in the Company’s books as at close of business on Friday, 22 November 2019”. Therefore means that investors don’t own the AEL asset and are seeking to enjoy the dividend payment would have to make offers to purchase from existing shareholders. “The payment date will be on or about Monday, 25 November 2019, therefore the last day to trade to be eligible for the dividend is Tuesday, 19 November 2019”. Supply and demand dictate that only premium offers will be attractive to holders which may, in turn, push up the current share price.
