Greencore has withdrawn a scrip dividend offer for shareholders due to a sharp fall in the company’s shares in recent months.
In a statement to the Irish Stock Exchange today, Greencore said the scrip offer – which would see new shares offered pro rata to shareholders – of €3.30 per ordinary share announced in May had been withdrawn.
Greencore shares have fallen from €4.71 on May 28th to €2.19 by 11.30am today and over the year-to-date are down over 50 per cent. This has seen the company's market capitalisation fall to €442 million.
"Continuing market volatility has resulted in a significant decline in the value of Greencore shares, which makes the scrip dividend offer unattractive relative to current market prices", the company said.
Greencore said as its articles of association prevent it from resetting the price it had decided to withdraw the offer and pay a final dividend of 5.30 cent per ordinary share wholly in cash.
The company said it intended to offer a scrip dividend in future.
