Iberdrola will pay a maximum of 1,248 million euros in the complementary dividend charged to 2018, which will pay on August 1 and will be 0.20 euros gross per share, within its flexible compensation program, which allows the dividend to be received in cash or in company securities.
This dividend will be added to the 0.151 euros gross already paid in February, with which the remuneration to the shareholder of Iberdrola with a charge to 2018 increases by 7.7% with respect to 2017.
The company informed the National Securities Market Commission (CNMV) on Tuesday of the terms of the new edition of the Iberdrola Flexible Remuneration system, on the occasion of the complementary dividend charged to its 2018 results.
Through a capital increase with a maximum reference market value of 1,277 million euros, the gross complementary dividend per share is guaranteed to be at least 0.20 euros.
Under the capital increase, a maximum of 145.1 million new shares will be issued, and 43 free-of-charge allocation rights will be required to receive a new share.
Iberdrola has indicated that the maximum nominal amount of the capital increase will amount to 108.8 million euros.
The amount of the gross complementary dividend per share is 0.20 euros and its maximum aggregate amount will be 1,248 million euros, a result of multiplying the total number of Iberdrola's securities outstanding as of today by the gross amount per share ( 0.20 euros).
Iberdrola shareholders have three options to receive the complementary dividend (collect the gross 0.20 euros per share in cash, sell their allocation rights in the market or obtain new shares released from the group free of charge), options that are not mutually exclusive , because the shareholder can choose one of the alternatives or combine them according to their preferences.
Iberdrola will compensate its shareholders with a charge to 2018 with a total of 0.351 euros gross per share compared to 0.266 euros gross of the previous year.
This amount is the result of adding the 0.151 euros gross per share already paid on February 5 for the interim dividend of 2018 and the 0.20 gross euros per share that will be paid as a supplementary dividend on August 1.
Iberdrola obtained a net profit of 3,014 million euros in 2018, 7.5% euros more than the previous year, while the dividend charged to the year grew by 7.7%.
The Iberdrola Flexible Remuneration system assigns by default the option to receive new shares, so those who want to receive their remuneration in cash must notify their bank entity between July 14 and 18.
Tomorrow, July 3, will be the last day on which the shares with the right to participate in the Iberdrola Flexible Remuneration system will be traded, and starting July 4 will begin the period of election and negotiation of the rights of free allocation.
The election period will end on July 18, as well as the deadline to request the cash compensation of the complementary dividend and the trading period of the free allocation rights.
Shareholders who have decided to cash in will receive the payment of the complementary dividend on August 1 and the new shares are expected to start trading on August 2.
Iberdrola plans to achieve a net profit of between 3,500 and 3,700 million euros at the end of the period 2018-2022, which would imply reaching a dividend of up to 0.4 euros per share in 2022.
(tagsToTranslate) Iberdrola (t) will pay (t) millions (t) dividend (t) complementary