Capital Management Strategies
Dividends | Share Buybacks | Warrants
One of the key ways the Board can add value for shareholders is through proactive capital management strategies. The objective is to increase total shareholder return and maintain the discount/premium to NAV within a reasonable range.
The Board of Marlin have implemented the following capital management strategies:
- Regular dividend programme
- Opportunity to partake in our Dividend Reinvestment Plan
- Share buyback programme
- Warrant issues
In August 2010, Marlin announced a new long-term distribution policy. Under the policy Marlin will pay shareholders 2% per quarter of its average NAV.
The payments are made in March, June, September and December.
|December 2020||2.20 cps|
|September 2020||2.06 cps|
A full history of Marlin dividends is available.
Marlin has a clear advantage over many other listed entities through their Portfolio Investment Entity (PIE) tax status. As a listed PIE, Marlin dividends will be tax-free to New Zealand resident shareholders. Refer to ‘What does PIE mean?’ under the FAQ section of the website for further information.
Imputation credits will be attached to dividends to the fullest extent possible.
Dividends paid by Marlin may include dividends received, interest income, investment gains and/or return of capital.
Dividend Reinvestment Plan (DRP)
The DRP offers shareholders an alternative to cash dividends. Shareholders who don`t require the regular income can elect to apply all or part of any cash dividends in subscribing for fully paid ordinary shares.
The advantage of enrolling in the plan is that shares issued under the DRP are at a 3% discount to the current market price (being the weighted average selling price on the first five days immediately following the ex-dividend date). Furthermore, shares issued under the DRP do not incur brokerage costs.
How to participate in the DRP:
- Read the DRP Offer Document
- Download the Participation Notice
- Post or email the completed Participation Notice to Marlin`s Share Registrar:
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Private Bag 92119
The company will from time to time buyback its own shares on market if in the opinion of the Board the Marlin share price does not appropriately reflect the company`s underlying NAV.
Buybacks work well in circumstances where excessive discounts to NAV exist, as it adds value for shareholders by purchasing undervalued shares in the company. Marlin will only buy back shares if the discount to the last published net asset value is not less than 8%.
The buyback period runs for 12 months from the date it is announced to the market. We currently have a share buyback policy in place.
Shares purchased under the policy are held as treasury stock and are available to be re-issued under the dividend reinvestment plan or to pay performance fees to the Manager.
On 17 October 2019 the Directors of Marlin announced that the company would undertake a pro rata offer of warrants to shareholders. There were 37,252,688 warrants on issue and on 6 November warrant holders had the option to convert their warrants into ordinary shares at an exercise price of $0.86 per warrant. There were a total of 33,399,590 warrants (90%) being converted in Marlin Global ordinary shares.
The remaining 3,853,098 warrants which were not exercised have now lapsed, and all rights in regards to them have now expired.
The additional funds will be invested in Marlin`s current investment portfolio of stocks, in similar proportions to the existing portfolio.
Previous warrant issues:
6 November 2020
12 April 2019
5 August 2016
15 December 2009 to 31 October 2010
What is a warrant?
A warrant is the right, not the obligation, to purchase an ordinary share in Marlin at a fixed price on a fixed date.