BUENOS AIRES, Argentina, May 2, 2016 /PRNewswire/ -- Nortel Inversora S.A. ("Nortel" or the "Company") (NTL) holding company of Telecom Argentina S.A., announces that during its meeting held today, the Board decided to deduct an amount from the "Voluntary Reserve for the Future Distribution of Dividends", pursuant to the powers granted by the Annual and Extraordinary General Stockholders' Meetings held on April 29, 2016. The Board has resolved to deduct and distribute as cash dividends an amount of AR$ 380 million. Payment of such dividends will begin on May 17, 2016, or any following date pursuant to applicable law at the jurisdictions where Nortel's shares are listed.
The following amounts will be distributed:
a) to the Class B preferred shares, pursuant to the terms of issuance of such shares, an aggregate dividend of AR$ 186,045,013.20, which amounts to AR$ 126.5220718757 for each Class B preferred share, representing 1,265.220718757 % of its par value (AR$10), and AR$ 6.3261035938 per ADR; and
b) to the shares of common stock, an aggregate dividend of AR$ 193,954,986.80, which amounts to AR$ 36.38657264 for each share of common stock, representing 363.8657264 % of its par value (AR$10).
Pursuant to the terms and conditions of issuance of the "Class B" Preferred Shares., the dividend approved for the holders of "Class B" Preferred Shares represents 48.959214% on the dividend referred to in paragraphs (a) and (b) of this notice, considered in the aggregate, while the dividend approved for the holders of shares of common stock represents the remaining 51.040786%
For stockholders, Record Date is May 16, 2016 and Payment Date is as from May 17, 2016.
For holders of American Depositary Receipts (ADRs), the Record Date is also May 16, 2016 and Payment Date is as from May 17, 2016. For such holders, payment will be made through JPMorgan Chase Bank N.A., Depositary under the ADRs program.
Please note that Nortel will deduct from the dividend –when applicable– the amounts paid by Nortel as tax on personal property (under unnumbered Section after Section 25 of Argentine Law No. 23,966, as amended) corresponding to fiscal year 2015, pro rata all applicable shareholders, except when such shareholders show: (i) that they have deposited the corresponding tax in Nortel's account; or (ii) that they hold no shares of Nortel as of December 31, 2015.
In addition and if applicable, Nortel will withhold 10% of the cash dividend as Income Tax pursuant to Section 90, last paragraph, of Law 20,628, as amended, incorporated by Law 26,893.
With respect to Class B preferred shares and holders of ADRs, taking into account the time needed to determine which shareholders owe such tax, payment of the dividends to those shareholders will be made within ten days of the date on which they are made available, pursuant to Section 90 of the Listing Rules of the Buenos Aires Stock Exchange.
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SOURCE Nortel Inversora S.A.