One of Mr. D.I.Y.s substantial shareholders, Employees Provident Fund (EPF) has voiced their intention to vote against MR DIY Group

One of Mr. D.I.Y.s substantial shareholders, Employees Provident Fund (EPF) has voiced their intention to vote against MR DIY Group

Question:

One of Mr. D.I.Y.’s substantial shareholders, Employees Provident Fund (EPF) has voiced their intention to vote against MR DIY Group (M) Bhd’s proposed renewal of authority for the company to purchase its own shares in its Annual General Meeting (AGM) on June 8, 2023. Instead, EPF has appealed for a higher dividend payout.

i) What do you think would be the trade-off between share buyback and cash dividend for Mr. D.I.Y. based on its current financial position?

ii) Is EPF’s reaction relevant to Mr. D.I.Y.’s long-term growth?

Expert Answer:

Answer rating: 100% (QA)

i The trade off between share buyback and cash dividend for Mr D I Y would depend on the company s current financial position its growth prospects and its strategic objectives Share Buyback Share buyb
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