Industrial park operator Phnom Penh Special Economic Zone (CSX:PPSP) will look to replace its previously approved share buyback scheme announcing a total 2020 dividend payout of $400,000 or KHR 22.67 ($0.0056) a share.
The annual dividend payout is equivalent to 1.09% of the stocks current share price of KHR 2,070 or 0.79% of its IPO price of KHR 2,860 a share in 2016 and represents 37.5% of profits.
The announcement released to market yesterday will need to be approved by shareholders first at an EGM after a proposed share buyback scheme was previously approved at the company’s AGM in 2021.
Insiders have speculated PPSP was originally unable to fund a 2020 dividend due to cash flow issues after a series of heavy losses during the height of the COVID 19 pandemic when the stock fell to KHR 1,490 a share.
Confusion over approved buyback scheme
The proposed buyback would have been a first for the exchange after the company submitted documents to the Securities and Exchange Regulator of Cambodia (SERC) at an undisclosed volume and value in 2020.
However, the buyback is yet despite receiving shareholder approval in October 2020.
Cambodia Investment Review, has now been told PPSP will “conform with SERC and have notified the board as well” of the announcement.
Royal Group becomes majority shareholders
Last month, Inter Logistics (Cambodia), a subsidiary of Royal Group bought Oknha Lim Chhiv Ho’s majority stake in the company – purchasing 45.09% of shares worth an estimated $16 million.
In a statement released to the market Kith Meng Chairman of the Royal Group of Companies and Inter Logistics (Cambodia) said the investment would bring more new technology systems, management, and business strategies, and investors.
Other major shareholders include JWD Infologistics PCL (14.61 percent), Zephyr Co Ltd (14.17 percent), and the most recent major shareholder Ng Lian Soon (9.04%).
According to the company’s latest filings, PPSP had increased revenue to $5.88 million for the third quarter reporting a $19,238 net profit loss.
PPSP had recorded a $1.84 million loss from January to June this year. The loss was attributed to PPSP not having any land sales for the current quarter.