Page 41 - Capricorn IAR 2020

2020 INTEGRATED ANNUAL REPORT
Strategic investments
On 1 July 2019, the Group concluded a 30% acquisition in Paratus Group Holdings Ltd (“Paratus”). Through our shareholding in Paratus and its subsidiaries and associates, Capricorn Group now holds an interest in Paratus entities in six African countries and delivery services to more than 20 countries across Africa. This is in line with our long-term ambition and strategic choices to transform the business using data and digital, and to grow and diversify through entrepreneurial action. This will increase opportunities for market penetration and expansion.
Subsequent to year-end, Paratus announced a N$260 million transaction with Google to be the landing partner for Equiano in Namibia. This will offer true redundancy to carriers heavily reliant on the West Africa Cable System (“WACS”) and will be the fastest connection from Europe to southern Africa.
Paratus is aggressively growing its infrastructure footprint across the continent. It is the only information and communication technology company that can provide redundancy on both the WACS and the Eastern African Submarine Cable System (“EASSY”) under one single autonomous system that does not run through South Africa.
Our long-term investment in associates Sanlam and Santam continues to create value for the Group through synergies, bancassurance offerings and income from our investment.
Dividends
The Group declared a final dividend of 20 cents per ordinary share. Considering the interim dividend of 30 cents per ordinary share, this represents a total dividend of 50 cents per ordinary share (2019: 66 cents per ordinary share). The total dividend per share for the year under review is 24.2% lower than the total dividend per share declared for the previous financial year. We believe that the total dividend balances prudency with a fair dividend yield for shareholders.
Jaco Esterhuyse
Financial director
In determining the final dividend, the Group has taken a number of factors into account, which include:
• Preservation of capital and liquid asset positions given, not only the current economic environment, but more importantly the negative future economic outlook
• The call by bank regulators to restrict dividend payments. As a consequence, Bank Windhoek’s final dividend to the Group was 45% lower than the previous year
• The need of our investors for cash returns in a low interest rate environment and a depressed economy where income and earnings are under severe pressure
Dividend payment details
• Last day to trade cum dividend: 9 October 2020
• First day to trade ex-dividend: 12 October 2020
• Record date: 16 October 2020
• Payment date: 30 October 2020
39