Scangroup Share Price

Special Dividend

On July 6th, 2020 WPP Scangroup declared a Kshs 8 dividend per share. The shares were to trade cum divided until 28th of July. During that period the share has been trading at around Kshs 20. What most investors don't know is that the Kshs 8 dividend that Scangroup is going to pay came from disposal of its Kantar Africa assets. The company also sold 100% of its Millward Brown East Africa Limited, Millward Brown Nigeria Limited an Millward Brown West Africa Limited. 

WPP Scangroup had also disposed all of its shareholding of the issued shares in Research and Marketing Group Investment Limited, a Mauritanian Holding Company for Kantar TNS business in Kenya, Nigeria, Ivory Coast, Senegal, Ghana, Cameroon and the UK to Kantar Square Two B.V. 

The Kshs 8 dividend is a special dividend which should be a great precaution for investors. Going forward the price of Scangroup shares will continue to lose value and I will buy the share at Kshs 2 soon enough. 

Currently the share price has plummeted by about 49% and is expected to plummet further. The special dividend will also distort and misrepresent the companies PE Ratio in the future.