Repsol’s board of directors has approved the payment of a remuneration to shareholders within the framework of its ‘Scrip Dividend’ program and under the ‘scrip dividend’ formula, and charged to the 2019 financial year.
As reported by the company to the National Securities Market Commission (CNMV), in exercise of the powers delegated by the general meeting of shareholders, the board has agreed to set the market value of the capital increase at 687.3 million euro.
As they explain, the listing price of the shares that will be taken as a reference for determining the guaranteed fixed price at which Repsol will commit to buying the free allocation rights will be the arithmetic mean of the weighted average prices of the share on the Spanish Stock Markets. corresponding to the days between December 4 and 10, 2019.
In accordance with this formula approved by the meeting, and if the closing price of Repsol’s listing on November 26, 2019 (14.59 euros per share) is considered, the purchase price by Repsol of each right free allocation rights would be 0.429 euros per right and the number of free allocation rights necessary for the allocation of one new Repsol share would be 33.
The oil company has had this system in place for years to reduce the cost of cash in dividend payments, although to avoid dilution of existing investors. According to Repsol’s strategic plan, the company expects to recover the annual dividend euro from next year, which would mean an increase of 8% compared to its current payment.
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