MFF Capital’s Dividend Update Raises Questions on Shareholder Participation and Capital Impact

• Ordinary fully franked dividend of AUD 0.09 per share
• Dividend payment scheduled for 31 October 2025
• Dividend Reinvestment Plan (DRP) price set at AUD 4.7205 with no discount
• Bonus Security Plan (BSP) price also set at AUD 4.7205 with full participation offered
• Approximately 23.55% participation in DRP and 6.14% in BSP among shareholders

Dividend Update and Payment Details

MFF Capital Investments Limited has provided an update to its dividend distribution for the six-month period ending 30 June 2025. The company declared an ordinary dividend of AUD 0.09 per fully paid ordinary share, which is fully franked, reflecting a corporate tax rate of 30%. The dividend record date was 9 October 2025, with payment scheduled for 31 October 2025.

Dividend Reinvestment and Bonus Security Plans

Alongside the dividend announcement, MFF Capital confirmed the pricing for its Dividend Reinvestment Plan (DRP) and Bonus Security Plan (BSP). Both plans have their prices set at AUD 4.7205, calculated using the volume weighted average price (VWAP) over a five-day trading period starting from the ex-date, 8 October 2025, through to 14 October 2025. Notably, there is no discount applied to either plan.

The DRP and BSP will issue new shares to participating shareholders, which will rank equally with existing shares from the date of issue. Participation in these plans is limited to shareholders residing in Australia and New Zealand. Approximately 23.55% of shares on issue, representing 13.25% of shareholders, are expected to participate in the DRP, while the BSP has a smaller participation rate of about 6.14% of shares, representing 1.5% of shareholders.

Implications for Shareholders and Capital Structure

The update reflects MFF Capital’s ongoing commitment to providing shareholders with flexible options for dividend reinvestment and capital growth. The absence of discounts on the DRP and BSP prices suggests a conservative approach to capital management, potentially preserving value for existing shareholders. The participation rates indicate a moderate level of shareholder engagement with these plans, which could influence the company’s share capital structure following the issuance of new shares.

Investors should note that the default option for shareholders who do not elect to participate in either plan is to receive the dividend payment in cash. The company has also confirmed that no external approvals were required for this dividend distribution, streamlining the process for timely payment.

Bottom Line?

MFF Capital’s dividend and reinvestment plan update signals steady income returns with measured capital management ahead.

Questions in the middle?

• Will participation rates in the DRP and BSP increase in future distributions?
• How might the issuance of new shares under these plans affect MFF Capital’s share price and liquidity?
• Are there any plans to adjust dividend policy or introduce discounts to reinvestment plans going forward?