Kontiki Finance Limited, a locally owned credit facility, has announced a new reinvestment plan that allows shareholders to increase their ownership. Under this plan, existing shareholders have the option to convert their dividends into additional shares at a discounted rate based on the share price on the date of the dividend payout.
The reinvestment price has been set at $1.02 per share, which reflects a five percent discount from the average share price calculated over the month leading up to the dividend announcement.
According to Barry Whiteside, chairman of Kontiki Finance, participants in the reinvestment plan will not incur any brokerage fees or levies. “Shareholders who choose to take part will receive newly issued shares,” he explained. The number of shares allotted will correspond to the total dividend amount owed to the shareholder, rounded down to the nearest whole number.
Shareholders registered with Kontiki Finance as of November 15 will be eligible for this reinvestment option. For example, a shareholder receiving $100 in dividends could opt for 102 shares rather than a cash payout.
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