Kingdom Holding Company (KHC), the investment firm chaired by Prince Alwaleed Bin Talal, said it plans to distribute SR550.3 million ($146.6 million) annual cash dividends out of its accumulated retained earnings during 2012. The cash dividend represents a payment of 5 percent of capital or 50 halalas per share to the public shareholders, said Prince Alwaleed at the KHC board meeting. It reflects KHC's strategy to distribute cash back to its shareholders as the company continues to experience improving results on the path of continuous profitability through its sound strategic plan, he added. Alwaleed said the distribution of dividends was pursuant to the resolution of the board of directors. KHC in a statement said Alwaleed, as the 95 percent shareholder of the company, will only receive 13 halalas per share per year, thereby giving up his full entitlement of the share of the dividends distribution to allow the company to distribute to the public shareholders annual dividends that are not less than the 5 percent of capital. The cash dividend will be payable to shareholders of record in four quarterly payments of 12.5 halalas each quarter. "The continuity of our dividend distribution is part of Kingdom Holding's strategic plan. It is based on our confidence that Kingdom Holding will continue to generate ample profits and cash to invest in the growth of our business and its commitment to continue to pay dividends in the future," Alwaleed noted. The meeting was attended by members Talal Al Maiman, executive director for Development and Domestic Investments, Ahmed Halawani, executive director for Private Equity, International Investments, Sarmad Zok, executive director of Hotel Investments besides Saleh Al Sagri, Dr Khaled Al-Saheem, Taher Agueel and Rasha AlHoshan. The Board meeting was attended by Shadi Sanbar, KHC's CFO and member of the Investment Committee.
