GTN Plans $0.23 Per Share Capital Return, EGM Set for July 29

GTN's Capital Return Proposal

GTN Limited (ASX – GTN) has announced plans to return roughly A$44 million to shareholders, pending approval at an extraordinary general meeting (EGM) set for 29 July 2025. This proposed capital return equates to approximately A$0.23 per share, a meaningful distribution aimed at delivering value back to investors.

The company’s announcement underscores its commitment to balancing shareholder returns with ongoing financial prudence. Importantly, GTN expects that this capital return will not hinder its ability to pay a final dividend for the 2025 financial year, adhering to its policy of distributing 100% of net profit after tax (NPAT) as dividends.

Timing and Process

The process is well defined, with key dates outlined – the notice of meeting will be dispatched on 30 June, followed by the EGM on 29 July. Shares will trade ex-return of capital from 1 August, with the record date for entitlement set at 4 August. Payment of the capital return is expected on 11 August 2025.

GTN is currently conducting an on-market buyback, which may affect the final number of shares eligible for the capital return, and consequently, the exact distribution per share. This dynamic introduces an element of variability that shareholders will watch closely as the dates approach.

Tax Implications and Regulatory Engagement

GTN is proactively engaging with the Australian Taxation Office (ATO) to secure a class ruling that will clarify the tax treatment of the capital return for shareholders holding shares on capital account. This step is critical to ensure transparency and certainty for investors regarding any tax obligations arising from the distribution.

Chair Peter Tonagh has emphasized the company’s focus on maintaining clear communication with shareholders throughout the process. The forthcoming notice of meeting will provide further details, enabling investors to make informed decisions ahead of the vote.

Strategic Context and Market Implications

This capital return reflects GTN’s strong balance sheet and confidence in its ongoing profitability. By returning capital while preserving dividend payments, the company signals a balanced approach to capital management that could appeal to income-focused investors.

Market participants will be keen to observe shareholder sentiment at the EGM and the subsequent share price reaction around the ex-return date. The outcome of the ATO’s tax ruling will also be a key factor influencing investor appetite and the broader perception of GTN’s capital management strategy.