COVID-19: Fan Milk Limited will not pay dividends for 2019 - Report

COVID-19: Fan Milk Limited will not pay dividends for 2019 - Report

- Fan Milk Limited has announced it would not pay dividends to shareholders for the 2019 operational year

- It explained that the economic impact of the coronavirus has influenced the decision

- Fan Milk Limited has informed the Ghana Stock Exchange of its decision

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Fan Milk Limited has announced its intent not to pay dividends to its shareholders for the 2019 operational year.

The company consequently informed the Ghana Stock Exchange (GSE) about its decision.

According to the company, the economic effects of the outbreak of the coronavirus compelled it to take the decision.

READ ALSO: We asked banks to suspend the payment of dividend to avoid 2 challenges - BoG

Per a report by thebftonline.com, it added that

“in the uncertain context of COVID-19 pandemic, reflecting the Company’s prudent balance sheet policy and to ensure financial flexibility, Fan Milk Limited’s Board of Directors have decided to pay no dividend for the year 2019.”

Fan Milk’s decision comes on the heels of directives to banks to refrain from paying dividends to shareholders.

The directive came from the Bank of Ghana, which performs, amongst other functions, a supervisory role over the banks.

YEN.com.gh earlier reported that despite the strong performance posted by the Bank of Ghana (BoG) in 2019, its board of directors did not approve the payments of dividends for the year.

BoG recorded a profit of GHC1.8 billion for the year 2019, YEN.com.gh has learned.

The 2019 result was twice the operating loss the central bank recorded in the preceding year.

The realization of profit was attributed to the strong performance it posted for the year under review.

READ ALSO: MTN Ghana suspends payment of dividends; postpones AGM

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