2023-12-14 18:33:00
Stock Exchange Approves Special Dividend and Shareholder Dispute Settlement
The Tel Aviv Stock Exchange has approved a move to pay a special dividend of NIS 2.5 per share, totaling NIS 231 million, to all shareholders. The decision was made during Thursday’s Board of Directors meeting, where it was also announced that five members of the stock exchange holding 17,156,677 settlement shares will grant a power of attorney to the leader of the investment house for the sale of the shares.
This move brings to an end the disputes between the stock exchange and some of its members regarding their holding in the shares of the stock exchange and their rights to the dividend. It also includes the decision of the stock exchange regarding the end of the dividend policy and the execution of plans for self-purchase. The proceeds received from the move will be used to invest in technological infrastructure, according to a statement from the stock exchange.
The arrangement to change the structure of the stock exchange was completed in September 2017, as part of which the members of the stock exchange were allocated shares and given a transition period to decrease the proportion of their holdings below 5%, which is the maximum percentage of holdings currently allowed for a member of the stock exchange. The special dividend is expected to be paid on January 2, 2024.
In addition, the stock exchange also approved receiving a loan of up to NIS 150 million from a financial association, despite having sufficient liquid balances. The company’s board of directors also decided that there is no room to continue promoting the move to purchase the company’s shares under the current circumstances.
The payment of the special dividend and the resolution of shareholder disputes marks a significant development for the Tel Aviv Stock Exchange, providing clarity and resolution to long-standing issues.
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