GEHI Approves Special Dividend of $11.256-$12.17 per ADS Ahead of Merger with Bright Sunlight Limited
Portfolio Pulse from Benzinga Newsdesk
Gravitas Education Holdings Inc. (GEHI) has announced a special cash dividend ranging from $11.256 to $12.17 per American Depositary Share (ADS), or from $0.5628 to $0.6085 per ordinary share. The total cash dividends to be paid range from $16 million to $17.3 million, funded by the company's cash balance. The dividend payment is conditional upon the closing of the merger with Bright Sunlight Limited. Post-dividend payment and the divestiture of GEHI's PRC education business, the company's net cash will be no less than $15 million.
September 21, 2023 | 10:38 am
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GEHI's special cash dividend announcement could potentially attract investors looking for immediate returns, possibly driving the stock price up in the short term. However, the dividend payment is conditional upon the closing of the merger, introducing a level of uncertainty.
Dividends are a way for companies to distribute profits back to investors, and they can make a stock more attractive to investors looking for immediate returns. In this case, GEHI's special dividend could potentially attract such investors, driving up the stock price. However, the fact that the dividend payment is conditional upon the closing of the merger introduces a level of uncertainty that could temper investor enthusiasm.
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