Dividends | Share Buybacks | Warrants
One of the key ways the Board can add value for shareholders is through proactive capital management strategies. The objective is to increase total shareholder return and maintain the discount/premium to NAV within a reasonable range.
The Board of Marlin have implemented the following capital management strategies:
In August 2010, Marlin announced a new long-term distribution policy. Under the policy Marlin will pay shareholders 2% per quarter of its average NAV.
The payments are made in March, June, September and December.
| December 2018 |
2.07 cps |
| September 2018 |
2.05 cps |
| June 2018 |
1.96 cps |
| March 2018 |
1.93 cps |
| December 2017 |
1.87 cps |
| September 2017 |
1.83 cps |
| June 2017 |
1.71 cps |
A full history of Marlin dividends is available.
Marlin has a clear advantage over many other listed entities through their Portfolio Investment Entity (PIE) tax status. As a listed PIE, Marlin dividends will be tax-free to New Zealand resident shareholders. Refer to ‘What does PIE mean?’ under the FAQ section of the website for further information.
Imputation credits will be attached to dividends to the fullest extent possible.
Dividends paid by Marlin may include dividends received, interest income, investment gains and/or return of capital.
The DRP offers shareholders an alternative to cash dividends. Shareholders who don't require the regular income can elect to apply all or part of any cash dividends in subscribing for fully paid ordinary shares.
The advantage of enrolling in the plan is that shares issued under the DRP are at a 3% discount to the current market price (being the weighted average selling price on the first five days immediately following the ex-dividend date). Furthermore, shares issued under the DRP do not incur brokerage costs.
The company will from time to time buyback its own shares on market if in the opinion of the Board the Marlin share price does not appropriately reflect the company's underlying NAV.
Buybacks work well in circumstances where excessive discounts to NAV exist, as it adds value for shareholders by purchasing undervalued shares in the company. Marlin will not buy back shares when the discount is below 8%.
The buyback period runs for 12 months from the date it is announced to the market. We currently have a share buyback policy in place until 31 October 2019.
Shares purchased under the policy are held as treasury stock and are available to be re-issued under the dividend reinvestment plan or to pay performance fees to the Manager.
On the 16 April 2018 the Directors of Marlin announced that the company would undertake a pro rata offer of warrants to shareholders. Marlin shareholders were allotted one warrant for every four shares held at 5.00pm on the Record Date (1 May 2018).
Marlin Global warrant holders had the option to convert their warrants into ordinary Marlin Global shares on 12 April 2019, at an exercise price of $0.75 per warrant. On the same day, Marlin Global shares were trading on-market at $0.86, a 15% premium to the exercise price.
The new shares were allotted to warrant holders on 16 April 2019. All new shares have the same rights as current Marlin Global shares, including participating in the company’s quarterly dividend policy.
The additional funds will be invested in Marlin Global’s current investment portfolio of stocks, in similar proportions to the existing portfolio.
Previous warrant issues:
|
Exercise Price |
Exercise Date / Exercise Period |
Total % Exercised |
|
|
MLNWC |
$0.75 |
12 April 2019 |
79% |
|
MLNWB |
$0.81 |
5 August 2016 |
5% |
|
MLNWA |
$1.00 |
15 December 2009 to 31 October 2010 |
2% |
A warrant is the right, not the obligation, to purchase an ordinary share in Marlin at a fixed price on a fixed date.
