Can anyone tell me how does share dividends work?

Recently YTLPOWR announced a share dividend of 1 treasury share for every 25 existing shares.

"Distribution of One (1) treasury shares for every Twenty-Five (25) existing ordinary shares of RM0.50 each held in the Company ("Share Dividend") . "

"LISTING'S CIRCULAR NO. L/Q : 47224 OF 2007

Distribution of One (1) treasury shares for every Twenty-Five (25) existing ordinary shares of RM0.50 each held in the Company ("Share Dividend") .

Kindly be advised of the following :

1) The above Company's securities will be traded and quoted [ "Ex - Dividend"] as from : [ 19 December 2007 ]
2) The last date of lodgement : [ 24 December 2007 ]
MANAGER, SEC. MARKET "

Is it too late to buy more share to be entitled to this? Since 19th Dec is tomorrow, I assume anyone currently having the shares in their CDS would be accounted for on the 19th. And share distribution would only happen on the 24th. Is this right? Or does it mean that from 19th until the 24th, anyone who bought shares during that period are entitled to the share dividend.

If ex-date is 19th, then everyone bought at and before 18th will be entitled for the distibution.

It is not dividend. It is the treasuries shares (company buy-back) that company decided to give back to the shareholders.

Actually personally, don't quite like the share buy back, I prefer they use the cash to give generous dividend consistently (as for share buy back, company needs to use the cash to buy back from the market as well). Share buy back is not good to support the share price alone instead if company always giving out generous dividend then investors automatically will look into it and create plenty of buying support due to dividend yield.
Just my personal preference, nothing to do which one is good.

Anyway, just notice its major shareholders are also acquiring more stake from the market. No doubt about this company profitibility issue.
But the 1:25 distribution will create some odd lots in the market.

This post has been edited by cherroy: Dec 18 2007, 10:38 AM

Thanks Cheeroy. So does it mean that if I were to buy today, I would still be entitled to get the share distribution? Because at the moment my holdings would only allow me to have a irregular lot size.


Well, to each it's own I guess. To me I would prefer a share 'dividend' compared to a cash dividend mainly because a share dividend is not taxed the 27% a normal dividend is subjected to unless I miss something somewhere. And also a share 'dividend' after distribution increase a holding of an investor whom already hold shares of the company without the need to purchase additional shares + costs. And I think the best time to distribute share 'dividends' is during a bull year, because share 'dividend' wouldn't mean a lot if the share prices are plunging.

Best example I can think of in share 'dividend' is like your Fixed deposit interests which you add into your initial deposit, and the next interest you receive are compounded.

Yes.

As company uses the cash pile to buy back its shares, it actual term, part of the cash also belonged to you, just company decide to buy its own shares and give you as shares rather than cash.

It makes nothing different actually. As cash pile of company is made from company profit and company profit is taxed already. At simple thinking, nothing much different actually especially next year new dividend system. Old system, one might gain some advantage from the dividend as taxed amount of dividend can be claimed back.
Will look into it more deeper to verify it to see got real different or not. I might be wrong.

As said up to individual preferences and opinion. Nothing right or wrong.

This post has been edited by cherroy: Dec 18 2007, 10:52 AM

Thanks Cheeroy.

under the new dividend system, rich is getting richer, while poor din get any refund anymore.

anyways, there is a 6 years transition period...

Company still can opt for the old system for a maximum another 6 years.. after tht must be convert into new dividend system...

while once Company opt for the new system, there is not turning back... if there is any balance on old and new tax credit account, it's burned...

guys, just to verification - share dividen for YTL Power on 19/12/07

Distribution of One (1) treasury shares for every Twenty-Five (25) existing

ordinary shares of RM0.50 each held in the Company ("Share Dividend") .

Date Stock Title EX Date Payment Date Lodgement Date
16 Nov 2007 YTLPOWR Share Dividend 19 Dec 2007 - 24 Dec 2007
25 Oct 2007 YTLPOWR Final Dividend 10% 10 Dec 2007 31 Dec 2007 12 Dec 2007

Q : If i have 2000 shares before ex-date. am I getting = 2000/4 = (80 unit shares) later?
So my share total will be 2000 + 80 = 2080?

yes...

Thanks.
When i can receive the 80 unit shares? didn't mention as dividen payment date.
if i got the 80 unit share. how do trade, selling 2080 odd unit.

ask your remisier to buy the odd lot for you...

Go to odd lot market, either you sell the 80 shares or buy 20 shares. Your remiser can do it for you.

I got the idea how to trade th odd lot now.
what abt and any idea when i can receive the 80 unit share? Didn't mention in any announcement.

think it depends on when the company issues the shares...can take about a month or so; perhaps your remisier would have a better idea?

Date Announced: 16/11/2007
EX-date: 19/12/2007
Entitlement date: 24/12/2007
Entitlement subject: Others
Entitlement description:
Distribution of One (1) treasury shares for every Twenty-Five (25) existing ordinary shares of RM0.50 each held in the Company ("Share Dividend")

Remarks:
Holders of 2000/2010 Warrants are reminded to lodge with the Company's Registrar, YTL Corporation Berhad of 11th Floor, Yeoh Tiong Lay Plaza, 55 Jalan Bukit Bintang, 55100 Kuala Lumpur, their subscription forms and subscription monies for subscription of new shares by 5.00 p.m. on 11 December 2007 to qualify for the above Share Dividend.

The exercise price of the Warrants 2000/2010 will be adjusted in accordance with the provisions of the Deed Poll dated 13 March 2000 and the Supplemental Deed Poll dated 18 June 2004 which require, inter alia, any adjustment to be based on the closing share price for 5 market days immediately preceding the date of announcement and that such adjustment be certified by an approved merchant bank and the Company's auditors. The adjustment to the exercise price will take effect from 9.00 a.m. on 25 December 2007, being the day next following the Book Closure Date for the Share Dividend. Holders of the 2000/2010 Warrants who have not exercised their warrants by 5.00 p.m. on 11 December 2007 will be notified in due course of the quantum of the adjustment to the exercise price of the 2000/2010 Warrants.

Subject to the approval of Bursa Malaysia Depository Sdn Bhd for the transfer of treasury shares under the share buy back account by bulk transfer method of debiting and crediting, the treasury shares to be distributed under the Share Dividend will be credited into the entitled shareholders' account maintained with Bursa Malaysia Depository Sdn Bhd within eight ( 8 ) market days from the Book Closure Date of 24 December 2007.

within 8 market days from 24/12/07. shd be b4 9/1/08 if i'm not mistaken.