20th Mar 2020 18:03
(Alliance News) - NextEnergy Solar Fund Ltd on Friday said it has cancelled its scrip dividend payment and that it has not seen any affects from the coronavirus outbreak so far.
In February, the solar power plant investor declared a scrip reference price of 117.00 pence under the company's scrip dividend alternative for the interim dividend.
However, the fund said since the reference price was declared, equity markets globally have experienced falls in value and extreme volatility. The company has experienced a fall in its share price of 20% as at the close of trading on Thursday.
As such, NextEnergy said it has taken the decision to cancel the scrip dividend alternative in respect of the interim dividend as the reference price is "likely to be materially in excess" of the company's share price.
Meanwhile, the fund noted the situation on the global economy remains uncertain due to the coronavirus outbreak. However, it said the economic slowdown has not yet had a significant affect on the company or its underlying portfolio, but "potentially may do so in the future".
The stock closed down 6.2% at 87.60p on Friday.
By Arvind Bhunjun; [email protected]
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