Apiam Animal Health Declares $0.10 Special Dividend Ahead of Scheme
Apiam Animal Health has announced a fully franked special dividend of 10 cents per share, payable before the completion of its proposed acquisition by Adamantem Capital entities. The dividend is conditional on the scheme’s effectiveness and offers shareholders potential tax benefits through franking credits.
- Fully franked special dividend of $0.10 per share declared
- Dividend payable prior to scheme implementation
- Scheme subject to court approval and other conditions
- Potential additional benefit from franking credits
- Dividend Reinvestment Plan not available for this payment
Special Dividend Announcement
Apiam Animal Health Limited (ASX – AHX) has confirmed its intention to pay a fully franked special dividend of 10 cents per share, contingent on the successful implementation of its proposed acquisition scheme. This announcement comes as part of the ongoing process where Pepper Bidco Pty Ltd and Pepper Holdco Limited, controlled by Adamantem Capital Fund II, seek to acquire Apiam through a scheme of arrangement.
The dividend will be paid before the scheme takes effect, with key dates set for the ex-dividend on 12 February 2026, the record date on 13 February 2026, and payment scheduled for 16 February 2026. Shareholders should note that the Dividend Reinvestment Plan will not apply to this special dividend.
Implications for Shareholders
For shareholders eligible to utilise franking credits, the special dividend may offer additional value of approximately 4 cents per share, subject to individual tax circumstances and the receipt of a favourable class ruling from the Australian Tax Office. This ruling is expected only after the scheme’s implementation, adding a layer of complexity to the tax benefits.
Apiam’s board has emphasised that the special dividend is conditional on the scheme becoming effective, which remains subject to court approval at the upcoming Second Court Hearing and other conditions outlined in the Scheme Booklet dated 12 December 2025.
Context of the Acquisition
Apiam Animal Health is a significant player in Australia’s rural veterinary services sector, operating over 80 clinics nationwide and employing more than 1,000 staff. The acquisition by Adamantem Capital entities signals a strategic move in the healthcare and veterinary services space, potentially reshaping Apiam’s future operations and ownership structure.
Investors will be watching closely as the scheme progresses through regulatory and legal hurdles, with the special dividend acting as a tangible return ahead of the transaction’s completion.
Bottom Line?
The special dividend offers shareholders immediate value but hinges on the scheme’s uncertain approval, setting the stage for a pivotal period ahead.
Questions in the middle?
- Will the court approve the scheme without significant modifications?
- How will the Australian Tax Office’s class ruling impact shareholder tax outcomes?
- What are the strategic plans for Apiam post-acquisition under Adamantem Capital?
