Naspers Unleashes Dividend Bonanza: Resumes Buybacks as Restructuring Victory Boosts Shareholder Value

  • Dividend Boost: Naspers finalizes increased dividends for 2023, with listed N ordinary shares receiving 874 cents per share.
  • Shareholder Dates: Crucial dates include December 5 for trading and December 8 as the record date for dividends.
  • Resilient Strategy: Naspers confidently resumes its share repurchase program after successfully unwinding the cross-holding structure, reflecting strategic resilience.
By Lethabo Ntsoane

In a significant move for shareholders, Naspers Limited announced the finalization of dividends for the fiscal year ending March 31, 2023, accompanied by the resumption of its share repurchase program. The company, listed on the Johannesburg Stock Exchange (JSE) under the code NPN, provided detailed information regarding the dividends, share trading dates, tax implications, and the status of the share repurchase program.

Dividend Details

For the financial year 2022-2023, Naspers is set to distribute dividends to eligible shareholders. The dividends, to be paid on Monday, December 11, 2023, were approved following shareholder agreement on August 24, 2023, and the removal of the cross-holding structure.

Dividend Breakdown

Share TypeDividend per Share (in cents)Compared to 2022 (in cents)
Listed N Ordinary874660.2344
Unlisted A Ordinary174.8132.0469

These dividends mark an increase from the previous year, reflecting the company’s financial performance and its commitment to rewarding shareholders.

Key Dates for Shareholders

Shareholders should take note of the crucial dates associated with the dividend distribution.

Important Dates

  • Last Date to Trade Cum-Dividend: Tuesday, December 5, 2023
  • Ex-Dividend Trading Begins: Wednesday, December 6, 2023
  • Restriction on Share Dematerialization/Rematerialization: December 6, 2023, to December 8, 2023 (both dates inclusive)
  • Record Date: Friday, December 8, 2023
  • Dividend Payment Date: Monday, December 11, 2023

These dates are critical for shareholders who wish to benefit from the declared dividends.

Tax Implications

While the dividends bring good news for shareholders, it’s essential to consider the tax implications. The dividends will be subject to a dividend tax rate of 20%, impacting the net dividend received by shareholders.

Taxation Details

Share TypeGross Dividend (in cents)Net Dividend (in cents)Dividend Tax (in cents)
Listed N Ordinary874699.2174.8
Unlisted A Ordinary174.8139.8434.96

These tax rates are in line with prevailing regulations, and shareholders not exempt from dividend tax should account for these deductions when considering their net returns.

Share Repurchase Program Resumes

Following the successful implementation of the unwind of the cross-holding structure, Naspers has opted not to temporarily suspend its share repurchase program. This decision aligns with the company’s strategy and indicates confidence in its financial position post-restructuring.

Conclusion

Naspers’ announcement of finalized dividends and the resumption of its share repurchase program underscores the company’s commitment to delivering value to its shareholders. The increased dividends, coupled with the decision to continue the share repurchase program, reflects confidence in the company’s financial position and strategic direction.

It is advisable for shareholders to take note of the specified dates, especially the last date to trade cum-dividend and the record date, to ensure eligibility for the dividends. Additionally, considering the tax implications is crucial for accurate financial planning.

Naspers, with its extensive footprint in the global consumer internet market, remains a key player in the technology sector, contributing to South Africa’s economic landscape. Shareholders and investors will be closely watching the company’s performance in the coming months as it navigates the evolving market dynamics.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo