Alter Ego Media Launches Dividend Reinvestment Program to Attract Long-Term Investors

14:26 20/6/2025 - Πηγή: Dikaiologitika

Alter Ego Media is launching a voluntary dividend reinvestment program for 2024, offering shareholders the chance to convert their cash payouts into discounted stock — a move aimed at long-term investors seeking to deepen their stake in the company’s future.

Greek media company Alter Ego

Media has announced a voluntary dividend reinvestment program for 2024, aimed primarily at institutional investors and shareholders with a long-term investment outlook. The initiative gives investors the option to convert their dividend payouts into new shares of the company, rather than receiving the usual cash payment.

The offer is part of a broader capital increase strategy approved by Alter Ego Media to support its long-term growth plans and strengthen working capital. While optional, the program is structured to appeal to investors who are not in immediate need of liquidity and who see potential in the company’s future performance. Shareholders who do not actively opt in will automatically receive their dividends in cash.

The reinvestment window opens on June 25 and closes on July 8, 2025. During this period, shareholders can submit their intention to reinvest through the banks or brokerage firms where their shares are held. Once submitted, participation is binding and cannot be altered after the deadline.

Under the terms of the program, shareholders may reinvest part or all of their net dividend, which for 2024 amounts to €0.095 per share after a 5% withholding tax (based on a gross dividend of €0.10 per share). For example, a shareholder holding 1,000 shares would be entitled to €95 net, which they could choose to convert into additional company stock.

The new shares will be issued at a discounted rate, calculated as 3% below the average trading price of Alter Ego Media’s stock during the first three days of the reinvestment period, from June 25 to June 27, 2025. If the average market price during those days is €4.396, the discounted issue price would be approximately €4.26 per share.

Eligible shareholders will receive as many shares as their reinvested funds can purchase, and the newly issued stock will carry full voting rights and eligibility for future dividends. The shares will be listed and begin trading on the Athens Stock Exchange on July 16, 2025 — the same day cash dividends are distributed. Importantly, investors who participate in the program will not incur any transaction fees or commissions.

In the event the capital increase is not fully subscribed, the company has stated that any unsubscribed shares will not be offered to third parties.

Market analysts expect that the primary participants in the program will be major shareholders and institutional investors, such as investment funds and pension schemes. These groups often seek to maintain or increase their stake in companies with strong growth potential. The 3% discount to the market price adds to the appeal, turning the reinvestment option into what many may see as a strategic buying opportunity.

For investors who believe in Alter Ego Media’s long-term trajectory, reinvesting dividends offers a cost-effective way to deepen their position without committing new capital. It is particularly attractive to those not focused on immediate cash returns, but rather on long-term value creation and share accumulation.

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