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