Ferrovial Plans Innovative Scrip Dividend for Shareholders
Ferrovial Announces a Groundbreaking Scrip Dividend
Ferrovial SE, recognized as one of the foremost infrastructure companies globally, has unveiled plans for an interim scrip dividend aimed at enhancing shareholder engagement and value. With a total dividend amounting to approximately EUR 228 million, shareholders will have the option to choose between receiving their dividends in cash or in the form of additional shares. This innovative approach allows for greater flexibility and reflects Ferrovial's commitment to maximizing shareholder satisfaction.
Key Features of the Scrip Dividend
Shareholder Choice and Election Period
The unique feature of this dividend is that it empowers shareholders to decide how they wish to receive their returns. The decision between cash and shares will depend on the specific share entitlements as of the relevant ex-dividend dates. The schedule to elect between these options begins on May 26, with specific deadlines tailored for shareholders through different custodians, ensuring that every holder can benefit from this opportunity.
Ex-Dividend Dates
Shares will officially trade ex-dividend from May 22, meaning any shareholder who holds shares as of this date will be eligible to participate in the scrip dividend offer. The expected date for the announcement of the cash dividend per share is May 21, creating anticipation among shareholders eager to know their potential payout.
Strategic Overview of the Scrip Dividend
Ferrovial is poised to determine the exact dividend per share based on the outstanding shares on the relevant ex-dividend date. The company has committed to calculating the Ratio, which is the number of shares required to receive one new share, ensuring that the value of the dividend in shares is equivalent to that of cash. This careful calculation showcases Ferrovial's dedication to treating all shareholders equitably.
Tax Implications and Benefits for Shareholders
Understanding the Tax Consequences
Shareholders should be aware that cash dividends are typically subject to a 15% Dutch dividend withholding tax, which will be deducted from the cash amount. However, dividends distributed in the form of new shares will face similar tax implications, albeit only concerning the nominal value of the new shares. To facilitate transparency, Ferrovial encourages shareholders to seek advice from their tax advisors to understand the pertinent tax regulations in their jurisdictions and any potential exemptions they may qualify for.
Payment of Dividends
The anticipated dividend payment date is set for June 25, allowing sufficient time for the election process to conclude. Therefore, whether in cash or shares, shareholders can expect their entitlements within this timeframe, as Ferrovial continues to prioritize shareholder returns.
Shareholder Engagement and Information Access
In an effort to keep its shareholders well informed, Ferrovial will distribute updates pertaining to the scrip dividend process. Additionally, shareholders are encouraged to consult their banks or brokers regarding processes related to the scrip dividend, ensuring they exercise their choices within the stipulated timelines.
Innovation in Shareholder Remuneration
This move is indicative of Ferrovial's innovative approach to shareholder remuneration, aiming to foster a closer relationship with its investors. By offering diverse options, the company enhances the appeal of its shares while providing financial flexibility to its shareholders.
Frequently Asked Questions
What is a scrip dividend?
A scrip dividend is a type of dividend payment where shareholders can choose to receive additional shares instead of cash. This method provides the potential for future capital appreciation.
When will shareholders receive their dividend?
Shareholders can expect the dividend payment to be processed starting from June 25, after the election period concludes.
How can shareholders elect their preferred dividend option?
Shareholders must indicate their choice through their banks or brokers during the specified election periods set out by Ferrovial.
What tax implications should shareholders consider?
Cash dividends are subject to a 15% Dutch dividend withholding tax, while dividends in new shares involve tax based only on their nominal value. It is recommended to seek advice from tax professionals regarding personal tax situations.
What is the Ratio for the share dividend?
The Ratio will be determined based on the average trading price of Ferrovial shares, equating the value of cash dividends to share dividends, thus maintaining fairness among shareholders.
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