Dubai Taxi Company Announces Dividend Payout
Dubai Taxi Company PJSC reveals board meeting outcomes, including a significant dividend payout and strategic amendments.
Summary
Dubai Taxi Company PJSC's board meeting results in a proposed dividend payout, AGM scheduling, and strategic amendments to the company's articles.
In a significant announcement, Dubai Taxi Company PJSC, the leading provider of mobility solutions in the UAE, has revealed the outcomes of its latest board meeting held on February 19, 2025. The company, which holds a commanding 44% market share in Dubai's taxi industry, continues to demonstrate robust financial health and strategic foresight.
The board has approved the audited financial statements for the fiscal year 2024, signaling a strong performance over the past year. In a move that underscores the company's commitment to delivering value to its shareholders, the board has proposed a cash dividend distribution for the second half of FY 2024. This dividend amounts to AED 122,308,369, which equates to 4.89 fils per share and represents an impressive 85% of the net profit for the period. This proposal is subject to approval at the upcoming Annual General Meeting (AGM) scheduled for March 19, 2025, pending the green light from the Securities and Commodities Authority.
Furthermore, the board has resolved to seek shareholder approval for a special resolution to amend the company's articles of association. This amendment pertains to the definition of 'Government Shareholder' in Article 1, which will now encompass any entity or person designated by the Government of Dubai. Such a change is indicative of the company's adaptability and alignment with governmental directives, ensuring strategic partnerships that could bolster its market position.
In addition to these significant resolutions, the board has also approved the Corporate Governance Report for FY 2024, reflecting the company's adherence to high standards of corporate governance and operational integrity.
Given the company's strong market position, strategic initiatives, and commitment to shareholder value, it is advisable for investors to consider holding their shares. The proposed dividend payout not only reflects financial stability but also indicates potential for future growth, especially with the strategic amendments paving the way for enhanced collaboration with government entities.
Source
Summary
The Board of Directors of Dubai Taxi Company P.J.S.C. held a meeting on February 19, 2025, at the company's headquarters, where they achieved quorum and addressed several key items. They approved the board's report and audited financial statements for 2024, decided to convene the Annual General Meeting on March 19, 2025, pending approval from the Securities and Commodities Authority, and proposed distributing cash dividends for the second half of 2024 totaling AED 122,308,369, representing 85% of the net profit. The board also resolved to seek shareholder approval to amend the company's articles of association regarding the definition of "Government Shareholder," subject to prior approval from the Securities and Commodities Authority. Additionally, the Corporate Governance Report for 2024 and other operational and internal matters were discussed.
