STI greenlights 25% annual dividend policy
Tanco group-led private school network operator STI Education Systems Holdings Inc. has adopted a new policy to distribute no less than 25 percent of its core income from the previous fiscal year as dividends to stockholders.
The new dividend policy, which will start with fiscal year 2017-2018, was recently approved by STI’s board.
The annual dividend declaration is subject to requirements provided under applicable laws and regulations, statutory limitations and/or restrictions, terms and conditions which may be imposed on STI by lenders or other financial institutions, alongside the company’s investment plans and financial condition.
Core income is defined as consolidated net income derived from the company’s main business—education and other recurring income.
“The amount of dividends will be reviewed periodically by the board in light of the company’s earnings, financial conditions, cash flows, capital requirements and other considerations, while maintaining a level of capitalization that is commercially sound and sufficient to ensure that the company can operate on a standalone basis,” STI said in a disclosure to the Philippine Stock Exchange on Monday.
STI has committed to pay dividends out of the company’s unrestricted retained earnings in cash, property or stock to all shareholders on the basis of outstanding stock.
The three subsidiaries of STI that are involved in education are: STI Education Services Group, Inc. (STI ESG), STI West Negros University Inc. and Information and Communications Technology Academy Inc. (iACADEMY).
STI ESG’s network totals 76 schools, with 38 owned and 38 franchised schools comprising of 64 colleges and 12 education centers.
As of end-June, STI ESG has a total student population of 123,800. —DORIS DUMLAO-ABADILLA
