Linde Bangladesh declares 4,100% interim dividend as profit surges by 49 folds
Its share price surges by 17.43% after the interim dividend declaration
Linde Bangladesh, a multinational industrial and medical gas producer, has recommended the highest-ever interim cash dividend for its shareholders by 4,100% during the first seven months of 2024.
As per the recommendation, Linde will pay Tk410 per share to its shareholders, and thus its shareholders including sponsors and general will get Tk632 crore from interim dividend.
Basically, riding on the significant capital gains out of divestment of subsidiary Linde Industries Pvt Ltd, Linde Bangladesh recommended a record-high for its shareholders for the period of January to July period this year, according to its disclosures published on the stock exchanges' websites yesterday.
The interim dividend declaration brought positive impact as its share price surged by 17.43% or Tk234.1 each to Tk1,547.30 each yesterday.
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Earlier, the multinational firm listed on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) sold its major revenue-generating segment, the welding electrodes business, to the ESAB Group.
However, the company did not disclose the selling value of its welding electrodes business.
Linde Bangladesh earned around Tk600 crore from the divestment its subsidiary, which was engaged in welding electrodes business, according to sources.
According to the DSE, sponsor-directors held 60% stake in the company and 40% by the general shareholders including the institutional and the general investors.
So, most of the dividend will be availed by the sponsor-directors of the company owing to their majority stake, and the dividend will be repatriated to the owner of Linde Bangladesh.
Of the dividend, sponsor-directors will get Tk374 crore and the rest Tk249 crore will be availed by the general shareholders.
Profit surged by 49 folds
According to its disclosures published today (5 September), it made a profit of Tk632 crore during the January to July of 2024, surging by 49 folds compared to its profit at the end of 2023.
Its earnings per share (EPS) stood at Tk415.08, a significant jump from Tk8.84 at the end of 2023.
In the disclosures it said, "EPS increased mainly due to higher profit resulting from capital gain out of the sale of shares of subsidiary company Linde Industries Pvt Ltd."
In July this year, Linde Bangladesh's board of directors decided to transfer shares of Linde Industries Pvt Ltd to the ESAB Group.
Linde Bangladesh had owned 13.82 crore shares of the subsidiary, while its company secretary Abu Mohammad Nisar held one share.
According to its disclosure, the firm transferred its holdings to ESAB Middle East FZE, and Abu Nisar transferred his share to Exelvia International Holdings.
According to the ESAB website, it is a world leader in welding and cutting equipment and consumables, with business operations in 140 countries and 26 manufacturing hubs across the globe.
Earlier, in October last year, Linde Bangladesh secured a High Court order to demerge its hard goods business to a wholly owned subsidiary, Linde Industries.
Linde Bangladesh was incorporated in 1973 and listed on the DSE in 1976. It started its welding electrode business in 1979 and set up the first electrode plant in 1995 at Rupganj.
Since then, it has regularly invested in this factory and set up three more lines to boost electrode production.
According to its financials for 2023, Linde Bangladesh made a profit of Tk52 crore and paid 1530% cash dividend to its shareholders.
