Perpetual Asia has no obligation to pay the Dec 2024 distribution. The unpaid distribution is non-cumulative and does not accrue distribution.
As a result of the exercise, the dividend stopper provisions under the perpetual securities are applicable.
Under the terms, the issuer shall not declare or pay any dividends or distributions and that no dividend or distribution is made on the units or the $140 million perpetual securities issued on Sept 27, 2016.
The issuer will not redeem, reduce, cancel, buy-back or acquire any of the units as well as any of the 2016 perpetual securities.
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This is unless the outstanding perpetual securities have been fully redeemed, the next scheduled distribution has been paid in full, or an optional distribution has been paid in full.
Units in LMIRT closed 0.1 cent higher, or up 5.56%, at 1.9 cents on Dec 10.
