RIYADH: Prince Alwaleed bin Talal, chairman of Kingdom Holding Company (KHC), announced on Saturday that pursuant to the resolution of the board of directors, the company intends to initiate its first annual cash dividend of SR550 million out of accumulated retained earnings. The cash dividend represents a payment of five percent of capital or 50 halalas per share to the public shareholders. With a dividend yield of 6.4 percent to the public shareholders based on current market price, this reflects a move in the company's strategy to start distributing cash back to its shareholders as it continues to experience improving results on the path of continuous profitability through its sound strategic plan.
The KHC board included Talal Al-Maiman, executive director for development and domestic investments and member of the Investment Committee, Ahmed Halawani, executive director for private equity, International Investments and member of the Investment Committee, Sarmad Zok, executive director of Hotel Investments and member of the Investment Committee, Saleh Al-Sagri, Khaled Al-Saheem and Taher Agueel.
Shadi Sanbar, KHC's CFO and member of the Investment Committee, and Ali Tabbal, deputy CFO, attended the board meeting.
Moreover, Prince Alwaleed as the 95 percent shareholder of the company will only receive 13 halalas per share per year, thereby giving up his full entitlement of the share of the dividends distribution to allow the company to distribute to the public shareholders annual dividends that are not less than the five percent of capital. The cash dividend will be payable to shareholders of record in four quarterly payments of 12.5 halalas each quarter.
Prince Alwaleed said: "Today's announcement represents a milestone in the company's history. The continuity of our dividend distribution is part of Kingdom Holding's strategic plan. It is based on our confidence that Kingdom Holding will continue to generate ample profits and cash to invest in the growth of our business and its commitment to continue to pay dividends in the future."
© Arab News 2010
