SINGAPORE : Neptune Orient Lines (NOL) is planning to return
more than S$1.3 billion in cash to shareholders as part of a
capital reduction exercise.
This will work out to a distribution of 92 cents per share.
The capital reduction exercise will not involve any cancellation of
shares held by shareholders.
NOL says the capital reduction and cash distribution will allow it
to achieve a more efficient capital structure.
The move is also meant as a reward to shareholders for their
loyalty and support.
In view of the cash distribution, NOL will not be paying out any
further dividend this financial year.
Shares of NOL surged 12% or 36 cents to close at S$3.36 on
Wednesday after the announcement.
- CNA /Is