Linde Bangladesh declares highest-ever 4500% cash dividend for 2024

Linde Bangladesh, a multinational industrial and medical gas producer, has recommended a record-high 4,500% cash dividend for its shareholders in 2024. This includes a 400% final cash dividend and a 4,100% interim cash dividend, which was declared during the first seven months of the year.

The company made this decision at its board of directors meeting on Thursday (13 March).

In anticipation of the dividend declaration, Linde Bangladesh's share price decreased by 3.01%, closing at Tk1,041.60 on the Dhaka Stock Exchange (DSE) today (13 March).

To formalise the 400% final dividend declaration, audited financial reports, and other agenda items, the company will convene its annual general meeting (AGM) on 29 May. 

The record date for eligibility has been set for 9 April. The company has already paid a 4100% interim cash dividend to their shareholders.

Basically, riding on the significant capital gains out of divestment of subsidiary Linde Industries Pvt Ltd, Linde Bangladesh recommended the highest interim dividend for its shareholders for the period of January to September period of last year, according to its disclosures published on the stock exchanges' websites earlier.

Earlier, the multinational firm listed on the DSE and Chittagong Stock Exchange (CSE) sold its major revenue-generating segment, the welding electrodes business, to the ESAB Group.

However, the company did not disclose the selling value of its welding electrodes business.

Linde Bangladesh earned around Tk600 crore from the divestment of its subsidiary, which was engaged in the welding electrodes business, according to sources.

According to the DSE, sponsor-directors held a 60% stake in the company and 40% by the general shareholders, including the institutional and the general investors.

So, most of the dividend will be availed by the sponsor-directors of the company owing to their majority stake, and the dividend will be repatriated to the owner of Linde Bangladesh.

According to its final disclosures, including extraordinary income, its earnings per share (EPS) stood at Tk421.94 in 2024, a significant jump from Tk15.02 at the end of 2023.

However, its net asset value per share stood at Tk229.34 at the end of 2024, which was Tk371.27 in the previous year.

Subsidiary transfer

In July this year, Linde Bangladesh's board of directors decided to transfer shares of Linde Industries Pvt Ltd to the ESAB Group.

Linde Bangladesh owned 13.82 crore shares of the subsidiary, while its Company Secretary, Abu Mohammad Nisar, held one share.

According to its disclosure, the firm transferred its holdings to ESAB Middle East FZE, and Abu Nisar transferred his share to Exelvia International Holdings.

According to the ESAB website, it is a world leader in welding and cutting equipment and consumables, with business operations in 140 countries and 26 manufacturing hubs across the globe.

Linde Bangladesh was incorporated in 1973 and listed on the DSE in 1976. It started its welding electrode business in 1979 and set up the first electrode plant in 1995 at Rupganj.

Since then, it has regularly invested in this factory and set up three more lines to boost electrode production.