Dividends Paid

On 24 August 2011, Asciano announced an fully franked dividend of 1 cent per share, taking the full year dividends to 2 cents per share fully franked at the top end of hte stated payout range of 20-30 per cent. 

These are the first dividends post-Corporatisation, which is symbolic of the progress made in the transformation of Asciano into a “normal” dividend paying industrial company. 

Franking of Dividends

As a consequence of amendments made in 2010 to the Corporations Act 2001 impacting on the payment and franking of dividends, the ATO released a draft Fact Sheet in July 2011 on the ability of companies to frank dividends. The Fact Sheet stated that companies with net assets less than the share capital may be unable to frank dividends on the basis that the dividend would be sourced from share capital. At 30 June 2011 Asciano Limited had $9,646.8 million of issued capital and $3,692.9 million of net assets.

The draft Fact Sheet does not specifically address th circumstances where a company is paying a dividend from current period profits even if net assets are less than share capital. Asciano Limited has 2011 current year profits and expects to also have 2012 current year profits. Asciano therefore believes that both the FY11 interim and final dividends should be frankable. The tax consolidated group is expected to be cash tax payable in 2011 and there should be  sufficient franking credits to frank dividends.

Asciano notes that the ATO view is also relevant to the interim dividend of 1 cent per share paid on 24 March 2011.

Dividend Reinvestment Plan

The Asciano Dividend Reinvestment Plan is currently suspended.  

Corporatisation – Cost Base

Prior to 15 November 2010, AIO was a stapled security, comprising one share in Asciano Ltd and one unit in Asciano Finance Trust.   On 15 November 2010, AIO undertook a corporatisation exercise whereby Asciano Ltd acquired all the units in Asciano Finance Trust and AIO became a single entity structure.    As part of that exercise, AIO obtained a Class Ruling CR 2010/47 which confirmed that unitholders can elect to roll over their cost base in units in Asciano Finance Trust to their shares in Asciano Limited. 

To access the Class Ruling on the ATO’s website, click here.  

2008 Asciano Finance Trust Distributions

For information relating to the 2008 Asciano Finance Trust distributions, click here.