Mercury NZ Declares NZD 0.1694 Dividend Per Share with 2% DRP Discount
Mercury NZ Limited confirms the share allotment price for its Dividend Reinvestment Plan and details its upcoming dividend payment scheduled for 30 September 2025.
- Dividend reinvestment plan share price fixed at NZD 6.6840
- Total dividend per share of NZD 0.16941176, including ordinary and supplementary components
- Dividend payable on 30 September 2025 with no required approvals
- DRP offers a 2% discount and is limited to shareholders in New Zealand and Australia
- AUD equivalent dividend amount to be disclosed on 22 September 2025
Dividend Details Confirmed
Mercury NZ Limited has provided an update confirming the price at which shares will be allotted under its Dividend Reinvestment Plan (DRP) for the upcoming dividend payment. The DRP share price has been set at NZD 6.6840, with the dividend scheduled to be paid on 30 September 2025. This announcement finalises details following the initial dividend notification in August.
Dividend Composition and Payment
The total dividend per ordinary share amounts to NZD 0.16941176, comprising an ordinary dividend of NZD 0.144 and a supplementary dividend of NZD 0.02541176. Notably, the dividend is unfranked, reflecting the company’s tax position. The record date for shareholders eligible to receive the dividend was 4 September 2025, with the ex-dividend date falling on 3 September 2025.
Dividend Reinvestment Plan Features
Mercury’s DRP offers shareholders the option to reinvest their dividends into new fully paid ordinary shares at a 2% discount to the average market price over a five-day trading period starting 8 September 2025. The DRP is available exclusively to shareholders with registered addresses in New Zealand or Australia, and participation is optional, with the default being cash payment if no election is made.
Currency and Market Considerations
While the dividend is declared in New Zealand dollars, shareholders on the Australian register will receive payments converted to Australian dollars based on a foreign exchange hedge rate to be disclosed on 22 September 2025. This currency arrangement introduces an element of exchange rate risk for Australian investors, pending the final AUD equivalent dividend announcement.
Implications for Investors
The confirmation of the DRP price and dividend details provides clarity for investors assessing their income and reinvestment options. The issuance of new shares under the DRP will slightly increase Mercury’s share capital, a factor to watch in terms of potential dilution and share price impact. With no external approvals required for the dividend payment, the process is straightforward and timely.
Bottom Line?
Mercury’s clear dividend and DRP terms set the stage for shareholder decisions ahead of the September payment, with currency and capital impacts to monitor closely.
Questions in the middle?
- How will the AUD/NZD exchange rate on 22 September affect Australian shareholders’ dividend returns?
- What level of participation in the DRP can Mercury expect, and how might this influence share capital?
- Will the unfranked nature of the dividend impact investor appetite compared to other utilities?
