KUALA LUMPUR (April 28): Shangri-La Hotels (M) Bhd (SHMB) will be reclassifying its final dividend of 12 sen as an interim dividend, over concerns about its ability to hold an annual general meeting (AGM) in light of the Movement Control Order (MCO).

In a bourse filing, the hotel operator said the final dividend was subject to shareholders' approval at its upcoming AGM, which was scheduled to be held on May 29, 2020, but which has now been postponed due to the Covid-19 outbreak and the MCO.

As such, it has decided to reclassify the final dividend as a second interim dividend for its financial year ended Dec 31, 2019 (FY19).

“The board is of the view that the reclassification of dividend will not be prejudicial to the interest of SHMB’s shareholders. Instead, the reclassification would be expedient to shareholders as it provides certainty of the dividend payment date, since the reclassified second interim single-tier dividend does not require shareholders’ approval,” it said.

The newly reclassified dividend will be paid out on July 16 to shareholders whose names appear on the record of depositors at the close of business on Thursday, June 18.

Shares in Shangri-La closed 0.22% or a sen higher at RM4.47 today, valuing the company at RM1.97 billion. It saw 2,000 shares traded.