Dana Gas plans to postpone decision on dividend

Dubai:

Dana Gas said on Thursday it planned to postpone the decision on the previously recommended 5 per cent cash dividend payment.

The board, at its meeting on the March 14 had taken the position that in view its strong cash position, the company could afford to return some of that cash to shareholders in the form of a dividend of 5 per cent. However, notwithstanding that the payment of the proposed dividend is permitted under the terms of the Sukuk, on April 4 one of the sukukholders obtained an ex parte injunction from the English court against the company preventing the company from declaring a dividend, the company said in a statement.

Dana Gas had earlier outlawed its $700 million sukuk because of changes in Islamic finance.