In a circular released on Tuesday, December 19, 2023, Mondi plc disclosed plans for a special dividend, along with associated share consolidation and other relevant matters. This move by Mondi aims to provide valuable returns to its shareholders and streamline its financial structure. let’s explore more about this Mondi Plc’s Special Dividend Announcement.

Mondi Plc’s Special Dividend Details

Mondi has declared a special dividend of 160 euro cents per ordinary share, scheduled for payment on Tuesday, February 13, 2024. This payout applies to all Mondi ordinary shareholders registered on either the UK main register or the South African branch register by Friday, January 26, 2024.

Currency Distribution

While Mondi will pay the dividend in euros, ordinary shareholders residing in the United Kingdom will receive their dividends in sterling, unless they explicitly choose otherwise. The deadline for euro currency elections is Friday, January 26, 2024, and the exchange rate for euro/sterling elections will be determined on Thursday, February 1, 2024.

Shareholders on the South African branch register will receive their dividends in South African rand cents, converted at an exchange rate of EUR 1 to ZAR 20.26652. This conversion results in a gross special dividend of 3,242.64320 South African rand cents per ordinary share.

Tax Implications

For South African tax residents holding shares on the South African branch register, dividends withholding tax will be applied at a rate of 20%, unless an exemption is met. This withholding tax results in a net dividend of 2,594.11456 South African rand cents per ordinary share. Shareholders on the South African branch register who are not tax residents in South Africa are exempt from this withholding tax.

It’s essential to note that, for South African dividends tax reporting, the income source for the dividend payment is attributed to the United Kingdom.

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Dividend Reinvestment Plan (DRIP)

Mondi offers an option for eligible shareholders to reinvest their special dividends in additional ordinary shares through its Dividend Reinvestment Plan (DRIP). The details, including eligibility requirements, election periods, and other relevant information, are outlined in the Circular and the declaration announcement.

Additional Information

The special dividend will be funded from Mondi’s distributable reserves. As of the dividend declaration date on December 19, 2023, Mondi had a total of 485,553,780 ordinary shares in issue, with 222,104,667 held on the South African branch register, excluding treasury shares.

About Mondi

Mondi, a global leader in packaging and paper, is dedicated to contributing to a better world through innovative and sustainable solutions. Operating across the entire value chain, Mondi manages forests, produces pulp, paper, and films, and manufactures sustainable consumer and industrial packaging solutions. Sustainability is a core element of their strategy, with ambitious commitments to circular-driven solutions by 2030.

In 2022, Mondi achieved revenues of €8.9 billion and underlying EBITDA of €1.8 billion from continuing operations, employing 22,000 people worldwide. Mondi holds a premium listing on the London Stock Exchange (MNDI) as a FTSE100 constituent and has a secondary listing on the JSE Limited (MNP).

Conclusion

Mondi’s announcement of a special dividend and the associated details reflect the company’s commitment to delivering value to its shareholders. The comprehensive approach to currency distribution, tax implications, and the option for dividend reinvestment showcases Mondi’s dedication to transparency and shareholder engagement. As the company continues to focus on sustainable solutions, this financial move aligns with Mondi’s broader strategy for a better and more environmentally conscious world.

Source: ShareCast