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German Enterprise Software Developer SAP SE (FRA: SAP) will provide an extra capital return of $1.7 billion to its shareholders in 2020, the company said in an official statement on Monday.
SAP credited “strong financial performance” in 2019 as the reason behind the move.
The company’s supervisory board has permitted to lay out this return either by repurchasing stocks or issue a special dividend of the same volume by Dec. 31, 2020.
This return will be in addition to the company’s usual practice of apportioning at least 40% of the post-tax IFRS profit.
The exact dates, when these returns are provided, will be determined based on ‘market conditions,’ the company said. If any special dividend has to be issued, it will need to be approved by the stockholders at the company’s annual general meeting, it added.
SAP’s stocks traded at 0.22% gain early morning (Europe time) on the Frankfurt Stock Exchange on Tuesday, but lost 0.51% at time of publication.
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