MTDC approves 50 laari dividend per share
MTDC's Annual General Meeting has approved a dividend of 50 laari per share, matching last year's payout, while the meeting also saw five new public shareholder directors elected to the board.
Photo: Adhadhu
Maldives Tourism Development Corporation (MTDC) approved a dividend of 50 laari per share at its Annual General Meeting held Sunday night.
MTDC has 34,087,354 shares outstanding, held between the public and the government. Of these, the public holds 18,428,278 shares (53 percent) and the Maldivian government holds 15,659,076 shares (47 percent).
As a result, MTDC will distribute a total of MVR 17,043,677 in dividends this round. Last year's dividend was also 50 laari per share, while the payout the year before that stood at 60 laari.
At the AGM, five members were elected to represent public shareholders on the board. They are former Prosecutor General Ahmed Mueenu, Aishath Leeza, Aminath Azlifa, Minna Rasheed, and Ibrahim Latheef.
MTDC shares are currently trading on the Maldives Stock Exchange between MVR 13.70 and MVR 14.76. The share price rose by roughly MVR 2 recently amid reports that changes were being considered to MTDC's shareholding structure, though the price has since been gradually declining again.
MTDC has been working to sell the headlease of Maguduvvaa, where Turkish company Ayada operates a resort, for just USD 1.5 million. The island's lease is due to expire in 2031. If the lease is sold, the company stands to incur a loss of USD 20 million.
To facilitate that transaction, MTDC's Board of Directors has moved forward with a rights issue, opening the opportunity for the company's current shareholders to purchase additional shares at a discounted price. Should the rights issue proceed and additional shares be sold, it could open the door for the government to acquire majority ownership of the company. If existing shareholders do not take up the newly issued shares, that opportunity would then pass to the government.
