Last checked at 18 Jul 2019 16:01
18 July 2019
BEXIMCO PHARMACEUTICALS LTD.
Dividend and Tax legislation changes affecting Bangladesh companies
Beximco Pharmaceuticals Limited ("Beximco Pharma", "BPL" or "the Company"; AIM Symbol: BXP, LEI No. : 213800IMBBD6TIOQGB56), the fast-growing manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, today announces that new legislation in Bangladesh, which has been introduced by the new Finance Act with effect from 1 July 2019, will affect the Company's dividend policy with respect to future dividend declarations.
The Bangladesh Government has introduced a law which, in effect, means that all listed companies will have to pay at least 30 percent of their net after-tax profit of any income year as dividends to their shareholders or face an additional tax charge of 10 percent on the total amount of earning retained in that income year. Dividends may be paid in cash or stock, however, the law provides that if the stock dividend exceeds the cash dividend, an additional 10 percent tax shall be chargeable on the amount of stock dividend declared.
The Company will review the legislation in detail and consider how to best manage the cash flow to deliver long-term shareholder value. The Company policy will be decided in due course.
The information communicated in this announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
For further information please visit www.beximco-pharma.com or enquire to:
Beximco Pharma
Nazmul Hassan MP, Managing Director
Tel: +880 2 58611001, ext.20080
Md. Asad Ullah, FCS, Executive Director & Company Secretary
Tel; +880 2 58611891, +880 2 58612040, Ext 10140
SPARK Advisory Partners Limited (Nominated Adviser)
Mark Brady / Andrew Emmott
Tel: +44 (0)20 3368 3551 / 3555
SP Angel Corporate Finance LLP (Broker)
Vadim Alexandre / Abigail Wayne
Tel: +44 (0) 20 3470 0470
FTI Consulting
Simon Conway / Victoria Foster Mitchell
Tel: +44 (0)20 3727 1000
Notes to Editors
About Beximco Pharmaceuticals Limited
Beximco Pharma is a leading manufacturer and exporter of medicines based in Bangladesh. Since its inception in 1976, the Company remains committed to health and wellbeing of people across all the continents by providing access to contemporary medicines. Company's broad portfolio of generics encompasses diverse delivery systems such as tablets, capsules, liquids, semi-solids, intravenous fluids, metered dose inhalers, dry powder inhalers, sterile ophthalmic drops, prefilled syringes, injectables, nebuliser solutions, oral soluble films etc. The Company also undertakes contract manufacturing for multinational and leading global generic pharmaceutical companies.
Beximco Pharma′s state-of-the-art manufacturing facilities are certified by global regulatory authorities of USA, Europe, Australia, Canada, GCC and Latin America, among others and it has a geographic footprint in more than 50 countries. More than 4,000 employees are driving the company towards achieving its aspiration to be among the most admired companies in the world.