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Improving Shareholder’s Values
At Prestariang, we clearly identify our stakeholders with various interest groups for transparent and accountable engagement. We understand the growing importance of stakeholder relations as a discipline in order to build long term relationships with our shareholders and the wider community.
Prestariang has a shareholder base of 2,229 institutional and retail/private shareholders as at 30 December 2016. Kumpulan Wang Persaraan (Diperbadankan) and AIA Berhad remained as our substantial shareholders with equity holdings of 11.8% and 9.6% respectively of our total share capital. Foreign shareholding stood at 6.08%.
Our share price dipped in 2016. However, this was an anticipated decline due to the challenging market environment. The price opened at RM2.97 on 4 January 2016 and closed at RM2.06 on 30 December 2016, representing a decline of 30.64%.
Returns to Shareholders
The overriding goal and guiding principle for Prestariang is to ensure healthy returns to our shareholders year after year. We have consistently achieved this by adjusting and transforming our business strategies to suit prevailing market needs, trends and conditions. We have always remained steadfast in the belief that innovation holds the key to our future. To date, our business philosophy of embracing change as the way forward has paid dividends in increasing shareholders' value over time.
For the financial year ended 31 December 2016, the Board of Directors declared and issued four interim single-tier dividends of 0.75sen per share, amounting to a total dividend of 3.00sen per share.
Total dividend payout in 2016 was RM14.5 million constituting 161% of PAT. This augurs well for shareholders' confidence as we push forward to ensure sustainable growth and returns in our businesses portfolios.
The Board acknowledges the importance of rewarding shareholders with stable dividend growth over time.
In line with the Board's intention to create value for shareholders through a committed dividend policy, the Board of Directors has resolved and approved in February 2016 that distribution of dividends of minimum 50.00% of PAT. However, such recommendation and payments of dividends will depend upon a number of factors, as follows:-
Availability of adequate distributable reserves and cash flows;
Operating cash flow requirement and financial commitments;
Anticipated future operating conditions, as well as future expansion, capital expenditure and investment plans; and
Any material impact of tax laws and other regulatory requirements.
Actual dividends proposed and declared may vary depending on financial performance and cash flow, and may be waived if the payment of dividends would adversely affect the cash flows and operations of the Group.
We reiterate our dividend commitment through the dividend payment table below:-