The Extraordinary General Meeting of Shareholders no. 1/2021 of Siam Commercial Bank (the Bank), held on November 15, 2021, approved in principle the payment of interim dividends from retained earnings of approximately 70 billion baht to SCB X Public Company Limited (SCBX) and other shareholders of the Bank for SCBX to use in business restructuring.
The Bank’s General Shareholders Meeting no. 199, held on April 4, 2022, subsequently approved to change the amount of the dividend payments from retained earnings to approximately 61 billion baht, in order to be in line with the dividend payments from the 2021 operating results already paid to the Bank’s shareholders prior to the completion of SCBX share swap. The dividend payments are subject to the Bank of Thailand’s approval.
SCBX stated that the Bank of Thailand issued a letter dated September 2, 2022, approving the Bank to distribute 61 billion baht in dividends to the Bank’s shareholders. Thus, the Bank’s Board of Directors meeting no. 13/2022 on September 5, 2022 approved the aforementioned dividend payments from retained earnings.
In this regard, SCBX will receive a dividend in the amount proportional to its 99.06% stake and will use the proceeds, in accordance with the business restructuring plan, to acquire shares of subsidiaries from the Bank and SCB 10X Company Limited and invest in SCBX’s subsidiaries, totaling 12 companies per attachment. The proceeds will not, however, be used to pay interim dividends to SCBX shareholders. Interim and annual dividend payments for the year 2022 operations to SCBX shareholders will be decided by the Board of Directors in the future.
Such dividend payments mark an important milestone in SCBX’s execution of its strategy to become a leading financial technology group in the region. SCBX added that it will continue to explore investment opportunities to create shareholders’ value in a timely manner. The Bank, after paying these dividends, will continue to maintain a strong capital position and the ability to operate the business efficiently.