Platinum shares plunge after settling special dividend
Make us a preferred source
Make us a preferred source on Google
The news: Shares in Platinum Asset Management tanked at market open as the asset manager traded ex-dividend and after talks over a proposed takeover by Regal Partners ended earlier this week.
The numbers: Platinum shares were down 18.8% to 69 cents by 11:20am AEDT, having shed 14.4% on Monday.
Platinum's board determined to pay a fully franked special dividend of 20 cents per share after ending the talks, or a 33.61% dividend yield on Wednesday's closing price of 85 cents.
The context: With Platinum shares trading ex-dividend, payouts from the special dividend are now settled. This means that new investors in the company will not receive the hefty special dividend, likely driving a sell-off in the stock.
As part of its announcement on Monday, Platinum said that it will still have sufficient working capital to pursue its growth initiatives after the payout.
