We refer to the announcements dated 27 February 2020 on the following:

(i) ABB’s quarterly report on consolidated results for the financial year ended 31 December 2019, wherein the Board of Directors of ABB (“Board”) had proposed a final single-tier dividend in respect of the financial year ended 31 December 2019 (“FYE 2019”) of 7.0 sen per ordinary share in ABB (“ABB Share”) (“Proposed Final Dividend”), subject to shareholders’ approval at the annual general meeting to be convened;

(ii) the dividend reinvestment plan (“DRP”) applicable to the Proposed Final Dividend; and

(iii) the approval by Bank Negara Malaysia via its letter dated 27 February 2020 for the increase in the issued share capital of ABB of up to 96.5 million new ABB Shares to be issued pursuant to the DRP.

Reclassification and revision of interim dividend

In view of the Movement Control Order, there is uncertainty in determining the annual general meeting (“AGM”) date of ABB at this juncture and hence, to facilitate timely dividend payment to the shareholders of ABB, the Board has resolved to reclassify the Proposed Final Dividend to an interim dividend for the FYE 2019 (“Interim Dividend”).

It is the Board’s intention to continuously provide a base level of return to the shareholders of ABB with the Interim Dividend while at the same time preserve ABB’s capital and liquidity. The Board, after taking into consideration the prevailing economic situation, took a prudent stance and resolved to revise the quantum of the Interim Dividend from 7.0 sen to 5.0 sen, amounting to a dividend payable of RM99,301,006 in respect of the FYE 2019. 

DRP

The DRP will accordingly be applied to the Interim Dividend and 100% of the Interim Dividend can be elected to be reinvested into new ABB Shares. This DRP will give the shareholders of ABB the option to reinvest all or part of the Interim Dividend in the form of new ABB Shares based on an issue price which will be at a discount to the market price of ABB Shares at the price fixing date to be announced.

This announcement is dated 27 April 2020.