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Seplat Plc has introduced that an exchange fee of N385.78/$1, will likely be used to find out its interim dividend fee of US$0.05 (United States 5 Cents) per share to shareholders whose names seem on its Register of Members as at 13th November 2020.

This disclosure was made in a company announcement issued by the corporate’s Chief Monetary Officer, Emeka Onwuka, which was made accessible on the web site of the Nigerian Stock Trade (NSE).

The administration of the corporate suggested within the doc that shareholders that maintain their shares on the NSE may elect to obtain their total dividend fee in {Dollars}, whereas shareholders on the London Stock Trade (LSE) may elect to obtain their total interim dividend fee in GBP or USD Greenback.

Consistent with this, the corporate submitted that the next foreign money exchange charges could be relevant within the willpower of the interim dividend fee to shareholders that qualify for and have elected to obtain the Q3 2020 interim dividend fee in Naira or GBP.

Trade Fee

1 USD = 385.78 Naira
1 USD = 0.7534 GBP

What you need to know

Nonetheless, the exchange fee for the Naira or Kilos Sterling quantities payable was decided by reference to the exchange charges relevant to the US greenback accessible on 12th November 2020.

The CBN official exchange fee at present stands at N379.5. Additional checks by Nairametrics revealed that the Naira fee used is the FMDQ benchmark fee for international exchange spot operations within the Buyers and Exporters FX Window (NAFEX).

What this implies

It may be argued that the N385.78/US$ proposed by the corporate is a good resolution on the NSE shareholders, because the proposed exchange fee by the corporate, holds a reasonably strong premium of N6.78/US$ for the shareholders in comparison with the CBN fee of N379/US$ the day the choice was made.

Nonetheless, in comparison with the speed on the parallel market, which had opened and closed at N460/US$ on the day the choice was made – Friday 13th November, one may argue that shareholders would have wished extra by way of foreign money conversion.

Considered from the parallel market exchange fee angle, NSE shareholders may conclude that they misplaced N74.22 per US$ on the conversion.