SCMP Group to issue cash dividend of HK$1.60 per share after sale of media assets to Alibaba
Company will focus on property investment after completion of the disposal of its media business, exchange filing says
SCMP Group Limited is to issue a special cash payment to its shareholders, worth approximately HK$1.60 per share, subject to the completion of the disposal of its media business, the company said in a filing to the Hong Kong Stock Exchange and Clearing on Friday morning.
The aggregate amount of the special cash payment would be HK$2.50 billion, the filing said.
“The board considers that, taking into account the company’s focus on its property investment business following completion and the company’s near term cash needs for such operations, it is appropriate to make the special cash payment to the shareholders,” the filing said.
On December 11, 2015, SCMP Group and purchaser Alibaba Investment entered into a sale and purchase agreement in relation to the disposal of the group’s media assets for a cash consideration of HK$2.06 billion, the filing said.
In another filing, the company said the board proposed to change the existing name of the company from “SCMP Group Limited” to “Armada Holdings Limited” and upon the name change becoming effective, the new Chinese name “南潮控股有限公司” will be adopted to replace the existing Chinese name “南華早報集團有限公司”.
Following the disposal, the group will no longer be the publisher of the South China Morning Post newspaper or own the intellectual property rights to the names “SCMP”, and “南華早報”, it said.
A special general meeting of shareholders of SCMP Group Limited will be held on March 14 at 10:00 am.