In August 2009, Barramundi announced a new long-term distribution policy. Under the policy Barramundi will pay shareholders 2% per quarter of its average NAV.
A full history of Barramundi dividends is available.
Barramundi has a clear advantage over many other listed entities through their Portfolio Investment Entity (PIE) tax status. As a listed PIE, Barramundi dividends will be tax-free to New Zealand resident shareholders. Refer to ‘What does PIE mean?’ under the FAQ section of the website for further information.
Dividends paid by Barramundi may include dividends received, interest income, investment gains and/or return of capital.
The company will from time to time buyback its own shares on market if in the opinion of the Board the Barramundi share price does not appropriately reflect the company's underlying NAV.
Buybacks work well in circumstances where excessive discounts to NAV exist, as it adds value for shareholders by purchasing undervalued shares in the company. Barramundi will not buy back shares when the discount is below 8%.
On the 1 November 2018 the Directors of Barramundi announced that the company would undertake a pro rata offer of warrants to shareholders. Barramundi shareholders will be allotted one warrant for every four shares held on record date (31 October 2018).
Each warrant gives shareholders the right, but not the obligation to subscribe for one ordinary share in Barramundi on the exercise date (25 October 2019). The exercise price will be $0.64 less any dividends declared during the period up to the exercise date.
A copy of the Warrant Terms can be found here.
A warrant is the right, not the obligation, to purchase an ordinary share in Barramundi at a fixed price on a fixed date.