Durban – RMB Holdings (RMH) share price rose by more than 23% on the JSE on Friday morning after the investment holding company declared a special dividend of R1.13 billion out of income reserves.
The special dividend of 80 cents a share comes after the group said the development of a new hub for business, entertainment, retail and residential living in Bucharest (Buharest development) were not met by the long stop date of March 31.
“As such, the RMB board will be returning the capital committed to Atterbury Europe and the Iulius Group, earmarked for the Bucharest development to shareholders as a special dividend,” said the group.
It however, added the special dividend would be subject to dividend withholding tax at a rate of 20%, which would result in a net special dividend of 64cents a share.
The shareholders would get a total of R903.49 million after tax. The share price responded positively to the special dividend declaration by climbing to its highest level in 10 months to R2 a share. The share price ended the day 7.89% higher at R1.82.
