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VODACOM TO PAY 60% OF PROFIT IN DIVIDEND TO SHAREHOLDERS "Credit News 24"

Vodacom Tanzania shareholders will now get 60 per cent of its net profit in dividends, the Board of Directors has recommended.

According to a statement issued on Wednesday, the recommendation for 60 per cent of net profit in dividend was reached to build their confidence after successful initial public offer and listing at the Dar es Salaam Stock Exchange (DSE).

Last week, the Board of Directors of the mobile telecommunication company recommended a gross final dividend of Tshs 12.74 per ordinary share, payable from income reserves, in respect of the financial year ended 31 March 2017.

"Subject to conditions stated in the company’s dividend policy, Vodacom Tanzania PLC proposed to pay its shareholders at least 50 per cent of net profit after tax. However, investors will now get 60 per cent of net profit after tax, building investor confidence post-IPO, the statement reads in part.

Vodacom, the leading mobile telcom in Tanzania in terms of subscription, became the first mobile telecom operator to list at the bourse after a successful initial public offer, which was the largest IPO in the history of capital markets, attracting more than 40,000 local investors.

It sold all the 560 million shares on offer in its stock market flotation, raising 476bn/- (213 million US dollars) as planned.

The IPO was part of government-imposed requirement for all telecom companies to list at least 25 per cent of their shares locally. So far it is the only mobile network operator to comply with the rule.

Before listing on DSE, the company had already announced financial results for the year ended 31 March 2017, which exceeded both profitability and operating free cash flow targets included in its IPO prospectus.

The financials which showed that commercial momentum continued as investments focused on key strategic drivers – data, M-Pesa and enterprise – yield positive results.
Title : VODACOM TO PAY 60% OF PROFIT IN DIVIDEND TO SHAREHOLDERS "Credit News 24"
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