Kingdom Holding to pay first cash dividend

Sunday, Dec 19, 2010

Gulf News

Company to pay shareholders out of earnings

Dubai: Saudi billionaire Prince Al Waleed Bin Talal, chairman of Kingdom Holding Company (KHC), said yesterday that his company plans to pay its first annual cash dividend of 550 million riyals (Dh538.7 million) out of accumulated retained earnings.

The cash dividend represents a payment of 5 per cent of capital, or 50 halalas per share, to public shareholders.

With a dividend yield of 6.4 per cent to the public shareholders based on current market price, this reflects a move in the companys strategy to start distributing cash back to its shareholders as the company continues to experience improving results on the path of continuous profitability through its sound strategic plan, a company statement said.

Prince Al Waleed, as 95 per cent shareholder, will receive only 13 halalas per share per year, the company said. He will thereby give up his full entitlement of the share of the dividend distribution to allow the company to distribute annual dividends that are not less than 5 per cent of capital to public shareholders.

The dividend will be paid to shareholders in four quarterly payments of 12.5 halalas each. Shares in Kingdom Holding jumped 4 per cent in early trading to 8.10 riyals.

Todays announcement represents a milestone in the companys history. The continuity of our dividend distribution is part of Kingdom Holdings strategic plan, Prince Al Waleed said. 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.

Associate firms

The firm attributed the gain to a better performance of affiliated firms. Kingdom Holding has minority stakes in some of the worlds top companies, the most valuable of which is Citigroup.

The KHC board includes Engineer Talal Al Maiman, executive director for development and domestic investments and Member of the Investment Committee; Engineer Ahmad Halawani, executive director for private equity and international investments and Member of the Investment Committee; Sarmad Zok, executive dir-ector of hotel investments and Member of the Investment Committee; Saleh Al Sagri, Dr Khalid Al Saheem and Taher Agueel.

5% cash dividend as a percentage of capital

50 halalas per share to be paid to shareholders

6.4% dividend yield to public shareholders

Staff Report