Special Dividend Hinges on Court Approval: What’s Next for AVJennings?

Special Dividend Announcement

AVJennings Limited (ASX – AVJ), a prominent player in Australia's property development sector, has declared a special fully franked dividend of AUD 0.167 per ordinary share. This dividend is notable not only for its size but also because it is contingent on the successful implementation of a significant corporate transaction.

Conditional on Scheme of Arrangement

The dividend hinges on the effectiveness of a proposed scheme of arrangement under which PM Nominees C Pty Ltd aims to acquire all ordinary shares of AVJennings. This scheme requires court approval, with a critical hearing scheduled for 23 July 2025. The company expects the scheme to become effective on 24 July 2025, following the lodgement of court orders with the Australian Securities and Investments Commission (ASIC).

Dividend Timeline and Details

Shareholders should note the key dates – the ex-dividend date is 28 July 2025, the record date is 29 July 2025, and the dividend payment is scheduled for 6 August 2025. The dividend is fully franked, reflecting a 30% corporate tax rate, which enhances its attractiveness to investors seeking tax-effective income. Importantly, this special dividend is not part of AVJennings’ Dividend Reinvestment Plan, meaning shareholders will receive cash payments rather than reinvested shares.

Implications for Shareholders and Market

This announcement signals a pivotal moment for AVJennings shareholders. The special dividend acts as a tangible benefit ahead of the potential change in ownership structure. However, the conditional nature of the dividend introduces an element of uncertainty, as the scheme’s approval is not guaranteed. Market participants will be closely watching the court hearing outcome and subsequent regulatory steps.

Should the scheme proceed as planned, shareholders can expect the dividend to be paid promptly, providing a rewarding return amid the transition. Conversely, any delays or setbacks in the scheme process could impact the timing or payment of this dividend, underscoring the importance of the upcoming court decision.