NTC like to announce AGM next week; expect at least 48% dividend again

ShareSansar, May 21:

Nepal Telecom is likely to make an announcement about its Annual General Meeting by next week proposing dividend not less than what it had pledged for the previous fiscal year – or 48 percent dividend.

“We are making final preparations to announce the AGM, which we plan to announce next week,” a highly placed source at NTC told ShareSansar today. “And we can assure that the dividend we pledge will not be less than what we offered last year.”

The source further informed that the telecom has already earmarked Rs 61 crore 24 lakh 42 thousand for paying out dividends after setting aside the amount to be paid to the government.

Nepal Telecom had earned Rs 11.31 arba in profit after tax in the last fiscal year, down from Rs 11.60 arba in the previous fiscal year 2068/69.

It had offered 48 percent dividend to its shareholders for the fiscal year 2068/69.

At present, Nepal Telecom has a paid up capital of Rs 15 arba.
 
Nepal Telecom, with its growth more or less stagnant for the past few years largely owing to growing competition from the private sector, is seeking to bring in a strategic partner, to rejuvenate the growth.
In March it formally initiated the process to bring in a strategic partner for better performance of the state run telecommunication giant.

The highest taxpayer company has already issued a tender notice to hire consultants to assist Nepal Telecom to find a strategic partner.

Some Indian and European companies have already expressed willingness to become NT’s strategic partner.

The consultants—Nepali or foreigner—with more than five years of experience in the telecommunications sector can submit their proposal.

The government, which holds 91 percent share in the company, is planning to hand over 25 to 30 percent of its stakes to the strategic partner.

Citizen Investment Trust (CIT) holds 0.03 percent of the company’s shares while ordinary shareholders and the company staff hold 3.97 and 4.5 percent shares respectively.

According to NT’s Managing Director Anup Ranjan Bhattarai, they are looking for such a strategic partner, which has extensive experience in the field of Information Technology besides previous experience of working as a strategic partner for a telecom company.

NT, which is also the largest company in the only stock market of the country in terms of share volume, has been mulling over strategic partnership to bring in the latest in the telecom sector to upgrade and expand its service to the people.