k1 Ventures reward shareholders with dividends again
In my previous post, I wrote that k1 Ventures might reward shareholders with dividends due to the divestment of China Auto Grand for $32 million. True enough, in today’s announcement, the management of k1 Ventures declared tax exempt one tier interim dividend of 1.5 cents per share. The dividend will be paid to shareholders on 12 February 2015 but the counter will go ex-dividend on 29 January 2015. Even though I am not vested in this counter, I feel happy for those who had invested in this counter.
In the current financial report, k1 Ventures classified the divestment of Helm, the long haul transport leasing business, as “discontinued”. This move effectively made k1 Ventures asset-lite because the heavy burden of long term debts was removed. Currently, the Group did not have any borrowing and is focused on managing the current portfolio of assets. In a way, it is a good move that k1 Ventures is not making any new investments because this will enable them to focus and maximize value on the proceeds from any realization of assets and to return the same to shareholders.
On the balance sheet, the Group has a net current asset of $84.3 millions. The shareholders’ funds decreased from $256.5 million at 30 June 2014 to $236.5 million at 31 December 2014.
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