The board of directors of NT has passed the proposal to provide 35 percent dividend and forwarded the proposal to the Finance Ministry for final approval. Shareholders of NT will get Rs 35 as divided per share if the proposal is approved. NT was the largest taxpayer in the country for Fiscal Year 2008/09. [break]
“We decided to increase the divided for 2008/09, as we earned more profit in the year than the preceding fiscal year,” a member of NT board told myrepublica.com.
NT earned Rs 9.49 billion as profit in 2008/09, slightly lower than its target of Rs 10.13 billion. Though the NT had distributed 25 percent dividend in the last year, shareholders got return of only 4 percent as they had bought the shares at Rs 600 per unit. Some shareholders had even protested the decision, saying that the dividend announced was too little. NT had earned a profit of Rs 7.94 billion in 2007/08.
According to sources, NT management is preparing to hold its second annual general meeting in March.
If the Finance ministry gave nod to the NT´s proposal, the telecom giant will provide dividend amounting to Rs 5.25 billion to its shareholders. But 92 percent of the amount would go the state exchequer, as the government owns majority stake in NT.
Of the 150 million units, Ministry of Information and Communication owns 62.2 million units, while the Ministry of Finance owns 74.9 million units. Likewise, Citizens´ Investment Trust owns 50,000 units while Ministry of Industry, Ministry of Law, Office of Auditor General and Department of Information own 1,000 units each.
Government agencies alone would net Rs 4.8 billion as dividend, while public shareholders and NT employees will get Rs 185.4 million and Rs 259.3 million respectively.
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