Midway Limited has announced a special dividend of AUD 0.3835 per share, contingent on key approvals tied to its proposed acquisition by RCM BidCo Pty Ltd.
- Special dividend of AUD 0.3835 per share declared
- Dividend ex-date set for 6 February 2025
- Payment scheduled for 18 February 2025
- Dividend contingent on securityholder and court approvals
- Dividend is 78.46% franked, reflecting partial tax credits
Midway Limited Announces Special Dividend
Midway Limited (ASX: MWY) has declared a special dividend of AUD 0.3835 per ordinary share, with an ex-dividend date of 6 February 2025 and a payment date set for 18 February 2025. This distribution marks a significant return to shareholders amid ongoing corporate developments.
Dividend Subject to Acquisition-Related Approvals
Importantly, the dividend is conditional on several approvals linked to Midway’s proposed acquisition by RCM BidCo Pty Ltd. These include securityholder approval expected by 30 January 2025, court approval by 4 February 2025, and the lodgement of the court order with ASIC by 5 February 2025. The dividend will only be paid if the scheme of arrangement facilitating the acquisition becomes effective.
Franking and Tax Implications
The dividend is partially franked at 78.46%, with a franked amount of AUD 0.3009 per share and an unfranked portion of AUD 0.0826. This partial franking reflects the corporate tax rate of 30%, offering shareholders some tax credits on their dividend income. Midway has confirmed there are no additional tax components or securities plans related to this distribution.
Context and Market Implications
This dividend announcement comes at a pivotal moment as Midway navigates its acquisition process. The conditional nature of the dividend underscores the uncertainty surrounding the deal’s completion. For investors, the dividend represents both a tangible return and a signal of confidence from the company’s board, contingent on the successful closing of the acquisition.
Market watchers will be closely monitoring the upcoming approvals, as their outcomes will not only determine the dividend payment but also shape Midway’s future ownership and strategic direction.
Bottom Line?
Midway’s dividend hinges on acquisition approvals, making the coming weeks critical for shareholders.
Questions in the middle?
- Will the securityholder and court approvals be granted on schedule?
- How will the acquisition by RCM BidCo Pty Ltd affect Midway’s future dividend policy?
- What are the potential risks if the scheme of arrangement does not become effective?