Bank of East Asia Unveils 2025 Second Interim Scrip Dividend Scheme – What Investors Need to Know

Key Highlights

• Dividend Announcement: The Board of Bank of East Asia, Limited (BEA) has declared a second interim dividend of HK\$0.22 per share for the financial year ended 31 December 2025.
• Scrip Dividend Scheme Option: Shareholders can choose to receive the dividend in cash, in the form of new fully paid shares (scrip), or a combination of both.
• Important Dates:
  • Dividend declared: 13 February 2026
  • Ex-dividend trading commenced: 3 March 2026
  • Book closure period: 5 March – 9 March 2026
  • Dividend payment and share certificates dispatch: On or about 13 April 2026
  • Deadline for election form submission: 2 April 2026, 4:00pm
• Scrip Share Pricing: The market value for new shares under the scrip scheme is set at HK\$14.018 per share, based on the average closing price from 3–9 March 2026.
• Entitlement Calculation: Number of new shares = (Number of shares elected for scrip) × (HK\$0.22 ÷ HK\$14.018). Fractional entitlements are paid in cash.
• Listing Approval: The scrip dividend scheme is subject to the Stock Exchange granting listing and trading permission for the new shares.
• Cost Efficiency for Shareholders: No brokerage fees, stamp duty, or related dealing costs for shareholders choosing new shares.
• Capital Retention for BEA: Cash not paid as dividends and instead issued as new shares will be retained as working capital by the Bank.
• Exclusion of Certain Overseas Shareholders: Shareholders in New Zealand and the United States will not be offered the scrip dividend option due to legal and regulatory constraints. They will receive cash dividends only.
• Electronic Communication: Shareholders are encouraged to provide or update email contact details for receiving corporate communications electronically, as required by HKEX rules.

Details Investors Should Not Miss

• Price-Sensitive Information: The Board’s decision to pay a HK\$0.22 interim dividend and offer a scrip alternative at a calculated price of HK\$14.018 per share could impact the Bank’s cash outflows and capital structure. The scrip option could result in less cash distributed and more shares issued, potentially diluting existing holdings but strengthening the Bank’s capital base.
• Shareholder Action Required: Shareholders wishing to elect for scrip (shares instead of cash) must complete and return the Form of Election by 2 April 2026, 4:00 pm. Missing this deadline means receiving the dividend entirely in cash.
• Settlement and Trading: New shares are expected to be credited and become tradable on the Stock Exchange from 13 April 2026. Allotment of new shares will be rounded down, with cash paid for any fractions.
• Permanence of Election: Shareholders can opt to receive all future dividends in scrip or cash permanently by selecting the relevant option on the Form of Election.
• Overseas Shareholder Restrictions: As a result of international regulatory compliance, shareholders in New Zealand and the US are excluded from the scrip scheme and will receive cash only. Other overseas shareholders may participate but must observe any resale restrictions in their jurisdictions.
• Debt Securities Update: The Bank’s notable listed debt securities include US\$500m 4.875% notes (2032), US\$250m 5.125% notes (2028), US\$650m 6.75% notes (2034), and RMB1bn 2.95% notes (2029). No other shares or debt securities are listed elsewhere.
• Electronic Communication Compliance: In line with HKEX requirements, the Bank is collecting email addresses to deliver actionable corporate communications electronically. Shareholders who have not provided valid emails will only receive printed documents.

Potential Impact on Share Value

This dividend announcement and scrip option are potentially price sensitive. The scrip dividend scheme may have the following effects:

• Shareholder Value: Investors opting for scrip could face slight dilution, but the scheme helps preserve the Bank’s capital, which may be viewed positively by the market, especially in volatile or tightening financial conditions.
• Market Perception: The continued payment of dividends and choice of scrip demonstrates confidence in the Bank’s capital position and dividend policy, which could support share price stability or appreciation.
• Liquidity and Trading: The availability of new shares might affect supply and demand dynamics on the market post-allotment.

Important Reminders for Shareholders

• Review your eligibility and ensure your election form is submitted on time if you wish to receive scrip shares.
• Update your electronic communication details with the Bank to ensure you receive timely updates and corporate actions.
• If you are an overseas shareholder outside Hong Kong, check with your legal advisor regarding participation and compliance with local regulations.

Disclaimer

This article is provided for informational purposes only and does not constitute investment advice or an offer to buy or sell securities. Investors should consult their own professional advisors before making any investment decision. While every effort has been made to ensure the accuracy of information, no liability is accepted for any errors or omissions.

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