SY-LED China Banking Corp. said on Friday it will pay out cash dividends of P0.80 per share for a total of P1.99 billion and 8 percent stock dividend, payable on June 2 to shareholders of record on May 18, 2017.
In its annual stockholders’ meeting on Thursday, the company said the cash dividend translates to 31 percent of the company’s 2016 net income of P6.46 billion. Based on China Bank’s current share price of P35.35, it is equivalent to a cash yield of 2.26 percent.
The stockholders also approved the increase in China Bank’s authorized capital stock from P25 billion to P33 billion, or from 2.5 billion shares to 3.3 billion shares, with par value of P10 per share.
“The stock dividend and authorized capital increase are subject to approval by the Bangko Sentral ng Pilipinas (BSP), the Securities and Exchange Commission (SEC), and the Philippine Stock Exchange (PSE),” China Bank said.
China Bank is raising P15 billion via a stock rights offering priced at P31 per share to support the company’s business growth. The offer period ended yesterday, May 5.
Proceeds will be used to grow its loan portfolio, expand its branch network, and support its other strategic business initiatives.
China Bank Capital Corporation, the investment arm of China Bank, acquired ATC Securities as its securities broker-dealer subsidiary company.
As a wholly-owned subsidiary of China Bank Capital and a part of the China Bank group, ATC Securities will be renamed China Bank Securities Corporation.