RE: Mathsman11 Sep 2015 12:19
Saw this yesterday morning.
Punchy yield stock GVC (GVC) has revealed it is taking a dividend holiday in 2016 as it prepares to subsume its acquisition target Bwin.Party Digital Entertainment (BPTY)......
.........But in spite of this latter point, GVC said it expected approximately €60m (£43.5m) of one-off costs as it fuses the businesses together and seeks to achieve cost reductions, meaning it would need to take a break from shareholder payouts.
Kenny Alexander, GVC's chief executive, told Investors Chronicle the dividend would resume in 2017. "We did a similar thing after the Sportingbet deal," he said. "We said we would take a year's [dividend] holiday and we ended up paying the dividend again after six months as the restructuring happened quicker. That could happen again." Mr Alexander added that after the previous dividend holiday, payouts increased "significantly" and once this merger was completed, he "would expect the dividend to be resumed" at the same level.