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The Galan Lithium Ltd (ASX: GLN) share price is marching higher today, up 2.16%.

Shares in the ASX lithium explorer closed yesterday at $1.86 and are currently trading for $1.90.

So, what’s boosting the Galan Lithium share price today?

Strong progress at lithium project

This morning Galan provided an update to ASX investors on the site and study activities at its 100%-owned Hombre Muerto West Lithium Project (HMW), located in Argentina.

Galan reported that its Definitive Feasibility Study (DFS) – led by engineering consulting group Hatch – is on budget and on track. It is expected to be completed by the end of December. The construction of its pilot plant is also progressing well.

Investors may also be bidding up the Galan Lithium share price after the company reported a diamond drill hole was underway at the Pata Pila site. Galan expects the exploratory drilling to provide key geological data for a potential extension to the existing mineral resource.

In other highlights from this morning’s release, Galan said its recently completed Transient Electromagnetic (TEM) geophysical survey had identified potential new mineral resource zones.

It plans to begin exploration drilling in the newly-identified zones in the second quarter of 2022.

Commenting on the progress, Galan Lithium’s CEO, JP Vargas de la Vega said:

I am very pleased to say that our world-class lithium HMW Project is progressing strongly, on all fronts. My meetings with local Catamarca authorities saw evidence of excellent governmental and community support for the HMW and Candelas Projects.

We are proud to be rapidly advancing projects that offer such economic and social benefits to the broader regions in which they are located.

Galan Lithium share price snapshot

The Galan Lithium share price is up 205.6% over the past 12 months. It has raced beyond the 11.6% gains of the All Ordinaries Index (ASX: XAO) over the same period.

Over the past month, Galan Lithium shares have gained 39.3%.

The post What’s boosting the Galan Lithium (ASX:GLN) share price today? appeared first on The Motley Fool Australia.

More reading

• ‘We are excited’: Why these 2 ASX lithium shares are popping today
• Get ready! The ASX shares set for a decade-long tailwind: expert

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shareholders of Newcrest Mining Ltd (ASX: NCM) are about to strike gold today. Not through any prospecting that this ASX 200 gold miner is doing. Or from the 0.58% rise to $27.03 that the Newcrest share price is presently enjoying. Rather, today is the day that Newcrest shareholders will receive the company’s latest dividend payment.

Today’s dividend is Newcrest’s interim payment. The gold miner announced the dividend in its half-year earnings report that was delivered last month. This earnings report, covering the six months to 31 December, outlined a difficult environment for Newcrest. The company reported a 46% slide in statutory profits, as well as a 21% fall in revenues.

This was perhaps why the interim dividend of 7.5 US cents per share, or 10.4 cents in our currency, was significantly below the 19.31 cents per share interim dividend that investors saw last year.

This dividend is also a notable decrease from Newcrest’s last dividend payment, which was the final dividend for FY21 paid out in September. That dividend was worth 55.2 cents per share.

Newcrest investors have dividend nuggets in their pans today

Anyhow, Newcrest shareholders will receive this latest interim dividend of 10.4 cents per share fully franked today. But if you have recently bought shares in the gold miner, you may be out of luck. Newcrest traded ex-dividend for this payment back on 25 February. That means any ASX investor who opened a position in Newcrest on or after that date will not be eligible to receive this dividend. Conversely, any investor who sold their Newcrest shares between 25 February and today will still receive the payment.

Putting together this dividend with the company’s September final payment and we get to a total of 65.64 cents per share, fully franked. That gives Newcrest Mining a trailing dividend yield of 2.43% based on the current share price. That’s 3.47% grossed-up with full franking.

Newcrest share price climbs in 2022

The Newcrest share price is up 10.37% in 2022 so far.

The ASX 200 gold miner has a market capitalisation of $24 billion.

The post The Newcrest (ASX:NCM) dividend is hitting bank accounts today. Here’s the lowdown appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Could these ASX 200 gold shares be set for more gains in 2022?
• Newcrest (ASX:NCM) shares in focus: The miner’s plan to create ‘over $100 million of additional free cash flow’
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen owns Newcrest Mining Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Bendigo and Adelaide Bank Ltd (ASX: BEN) shareholders will be cheering on the sidelines as the company releases its dividend distributions today.

The regional bank is rewarding eligible investors with a fully franked interim dividend payment of 26.5 cents per share.

At the time of writing, the Bendigo Bank share price is swapping hands for $10.28, down 0.19%.

For context, the S&P/ASX 200 Index (ASX: XJO) is heading the other way, up 0.42% to 7,546.2 points.

Let’s take a look at all the details regarding the company’s dividend.

Bendigo Bank pays out interim dividend

Bendigo Bank reported strong growth across key metrics in its results for the first half of the 2022 financial year.

In summary, revenue rose 8.5% from the prior corresponding period to $965.1 million. This was supported by residential lending growth, up 8.4%, as well as settlements growth, up 4.3%.

Management noted that despite the robust performance, this was partially offset by weakness in its agribusiness lending. This was due to seasonal factors and softness in business lending.

Nonetheless, the board opted to increase its interim dividend by 12.8% on H1 FY21’s 23.5 cents per share.

When calculating against the current share price, Bendigo Bank is trailing on a forecast fully franked dividend yield of 5.16%.

Management expects the dividend payout ratio target of 60% to 80% of cash earnings to be at the low-end in FY22.

Bendigo Bank share price snapshot

The past 12 months have been choppy for the Bendigo Bank share price, registering a gain of just 2%.

Its shares hit a 52-week low of $8.43 in December 2021, before zipping above the $10 mark in 2022. This has led the company’s share price to increase by 13% in value for the current calendar year.

Bendigo Bank has a price-to-earnings (P/E) ratio of 18.86 and commands a market capitalisation of roughly $5.77 billion.

The post It’s payday for Bendigo Bank (ASX:BEN) shareholders today. Here’s the deal appeared first on The Motley Fool Australia.

More reading

• How did ASX 200 bank shares perform today?
• Why has the Bendigo Bank (ASX:BEN) share price been smashing BOQ in 2022?
• Can the Bendigo Bank (ASX:BEN) share price stick above the $10 mark?
• Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
• Here’s why the Bendigo Bank (ASX:BEN) share price is sliding 5% today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Archer Materials Ltd (ASX: AXE) share price is taking off following an update on the company’s ‘lab-on-a-chip’ technology.

The company recently integrated a graphene layer that is just one atom thick with silicon electronics. Now, the microscopic graphene electronic properties have been found to be retained post-processing and integration with silicon.

At the time of writing, the Archer Materials share price is 97 cents, 11.49% higher than its previous close.

Though, earlier today it surged 19.5% to trade at $1.04.

Let’s take a closer look at the news driving the materials technology company’s stock higher on Thursday.

One step closer to creating ‘lab-on-a-chip’

The Archer Materials share price is in the green on news the tech company has successfully measured and confirmed the electronic transport in the integrated graphene device.

The device is part of the development of the company’s biochip. The biochip is expected to see droplets of biological specimens analysed and processed using graphene-based sensors.

If all goes to plan, the biochip will allow for ultrasensitive detection and analysis of diseases.

The direct electronic measurements results announced by the company today are an important step towards building graphene-based transistors.

Such transistors are integral to the operation of Archer’s biochip technology.

“Prior to this latest work, Archer had achieved the integration of graphene in silicon electronics,” said Archer Materials CEO Dr Mohammad Choucair.

Archer has now successfully performed complex post-integration lithography and atom-thick materials’ device processing that preserve graphene’s advanced electronic properties.

The electronic transport measurements performed by the Archer team are the fundamental link with respect to using graphene in transistor technology intended for future biosensing operations in Archer’s biochip devices.

Archer Materials share price snapshot

Sadly, today’s gains haven’t been enough to boost the Archer Materials share price back into the green on the ASX.

Right now, the company’s stock is trading for 19% less than it was at the start of 2022.

Though, it’s 12% higher than it was this time last year.

The post ‘Fundamental link’: Here’s why the Archer Materials (ASX:AXE) share price is surging 11% appeared first on The Motley Fool Australia.

More reading

• Why did the Archer Materials (ASX:AXE) share price crumble 7% today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

The value of cryptocurrency Solana (CRYPTO: SOL) jumped as much as 9.7% in the last 24 hours as of 4:40 p.m. ET on Wednesday as investors poured into the token. And Solana is up big while most of the rest of the crypto market is down slightly today. 

So what 

The biggest news of the day is that OpenSea is opening support for Solana NFTs in April. OpenSea is by far the largest NFT marketplace today with a $13 billion valuation and over $3 billion in transactions in a good month, but thus far it has not welcomed the Solana blockchain. 

One of the theories is that OpenSea opening to Solana will allow much higher-valued NFTs on Ethereum (CRYPTO: ETH) to be compared to Solana NFTs, which often trade for a fraction of the price. It also opens up more well-heeled buyers of NFTs to the booming blockchain. Adding money and users should be good for Solana in the long term. 

Now what 

I like this news broadly for Solana but don’t know how it will impact the cryptocurrency in the long term. If buyers are just getting into NFTs, it might not drive up the value of the underlying cryptocurrency at all. That said, it’s a positive to have more users in the ecosystem, and that should be good for Solana’s blockchain over the long term. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Solana Stock jumped 10% today appeared first on The Motley Fool Australia.

More reading

• Why Ethereum, Solana, and Dogecoin are surging higher today
• Why Ethereum, Solana, and Cardano dropped today

Travis Hoium owns Ethereum and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Ethereum and Solana. The Motley Fool Australia owns and has recommended Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The EML Payments Ltd (ASX: EML) share price is lower today, down 1% to $2.96 at the time of writing.

But major broker Macquarie thinks the stock should be trading about 33% higher.

EML Payments is a business that ‘powers’ payments around the world. It operates across 27 countries with 23 currencies in areas like card payments, open banking, and digital account payments.

EML provides services for the banking and financial sector, buy now, pay later, sports betting and gaming, retail and e-commerce, and government.

Macquarie upgrades EML share price

According to the Australian Financial Review, Macquarie has increased its price target on EML to $3.95, up from $3.80. That implies a potential upside of about 33% over the next 12 months.

The broker believes that EML will benefit from the rising interest rate environment. This is due to the A$2.7 billion that EML held in its stored float as of 31 December 2021. About $2.3 billion was held in cash and $400 million was in “highly rated, low-risk bonds”, according to EML.

EML itself said that it “benefits as interest rates rise due to our large stored value float”. Based on the current banking arrangements, if rates across all jurisdictions were to rise by 1%, this would add $14 million to $15 million to EML’s earnings before interest, tax, depreciation, and amortisation (EBITDA).

EML previously announced that it is looking to increase the size of its low-risk bond portfolio to offset negative interest rates on Euro balances. This is expected to help improve returns in the second half of FY22.

The AFR reported comments made by Macquarie:

Based on current one month OIS forward curves (as at 28 March) and varying arrangements across jurisdictions we estimate EML’s effective interest rate on stored balances peaks at ~1.7% in FY24. All things being equal this would imply ~$45m of interest revenue upside, which has no associated expenses.

EML share price valuation

Macquarie’s profit estimates put the EML share price at 21x FY23’s estimated earnings.

But Macquarie isn’t the only broker that is positive on the business.

For example, UBS also rates EML as a buy, with a price target of $4.55. That implies a potential upside of more than 50%.

UBS is a fan of the recent move by EML to enter the European employee benefits market with Up Spain, covering meal vouchers and employee benefit solutions. Globally, the employee benefits solutions market is worth $88 billion, with Europe representing 35% of it.

Up Spain is one of the three biggest providers in Spain, with more than one million users across approximately 4,700 corporate clients and a network of more than 30,000 restaurants in Spain.

Up Spain is a subsidiary of Up Group, which offers employee benefits and incentive programs in 28 countries.

The post Here’s why Macquarie just upgraded the EML (ASX:EML) share price appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
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• These are the 10 most shorted ASX shares
• 2 high-growth ASX shares to buy today: brokers
• These were the best performing ASX 200 shares last week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended EML Payments. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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2021 saw a flurry of mergers and acquisitions amongst ASX shares, making it a record year for listed M&A in Australia.

Some of the biggest moves among ASX shares that you likely followed would include the Santos Ltd (ASX: STO) merger with Oil Search, completed in December.

Or buy now, pay later (BNPL) star Afterpay’s acquisition by global fintech giant Block Inc (ASX: SQ2), approved by shareholders in December.

And how can we forget Sydney Aviation Alliance’s $23.6 billion private takeover bid for Sydney Airport? An acquisition that was completed following court approval in February.

But according to broker Wilsons, 2022 could see even more takeover action among ASX shares.

Records are made to be broken

Wilsons notes that in 2021 10% of the S&P/ASX 200 Index (ASX: XJO) market cap was involved in M&A.

But despite a slow start to M&A in 2022, the broker believes it will still be a strong year for additional takeovers.

Among the reasons we could see another record year for M&A among ASX shares, Wilsons cites pent-up demand for transactions due to COVID delays, topped up by large pools of capital yet to be deployed.

The broker also points to the fact that earnings yields are much higher than corporate borrowing costs, “providing the financial ammunition for M&A transactions”.

According to Wilsons:

Our work highlights that close to 20% of S&P/ASX 100 companies could potentially look financially attractive to an acquirer. Our list of vulnerable names to M&A all generate enough earnings and cash flow that they would effectively be ‘self-funding’ for an acquirer.

Which ASX shares are primed for takeover?

Wilsons applied 3 screening methods to winnow down the ASX shares that look primed for takeover.

Namely:

• Earnings yield (the inverse of the price to earnings (P/E) ratio)
• Free-Cash-Flow (FCF) yield
• Relative share price underperformance

The broker added its own quantitative screen to eliminate ASX shares like BHP Group Ltd (ASX: BHP), which it believes is too big to be an M&A target.

After running the numbers, Wilsons came up with 5 ASX shares that ticked all 3 screens.

First up, personal protective equipment and safety device provider, Ansell Ltd (ASX: ANN).

On Ansell, Wilsons noted:

Significant share price underperformance on a large profit warning suggests structural factors may need to be addressed. Global exposure could fit in with large conglomerate consumables company or PE backed bid.

Also ticking all 3 screens is integrated services provider Downer EDI Ltd (ASX: DOW).

Wilsons commented on Downer:

Valuation misconception, business now more focused following divestments. Structural trends of urbanisation and outsourcing of both private/public services.

The next ASX share primed for a 2022 takeover is global packaging company Amcor PLC (ASX: AMC).

According to Wilsons, Amcor is, “Well run and with an under geared balance sheet vs US peers, with strong FCF yield. Global scale likely to present a barrier.”

Fourth on the list (in no particular order) is toll road operator and developer, Atlas Arteria Ltd (ASX: ALX).

For Atlas, Wilsons said, “Long dated toll road concessions could be vulnerable to private infrastructure asset managers.”

And the fifth ASX share that looks primed for a 2022 takeover is Scentre Group (ASX: SCG), which owns and operates Westfield properties across Australia and New Zealand.

On Scentre Group, Wilsons commented, “COVID-19 impacted earnings – acquirer would have to believe in the future of shopping malls post-pandemic.”

So which ASX shares will invite the first takeover interest?

Stay tuned!

The post 5 ASX shares that could be primed for takeovers in 2022: Wilsons appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why is the Santos share price sliding today?
• Own ASX 200 energy shares? Here’s the latest on the 2022 crude oil disruptions
• 5 things to watch on the ASX 200 on Wednesday
• Global poster child? Why this fundie is bullish on the Santos share price

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. The Motley Fool Australia owns and has recommended Amcor Limited and Block, Inc. The Motley Fool Australia has recommended Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Paladin Energy Ltd (ASX: PDN) share price is on ice today amid a capital raise to restart work at a uranium mine.

The uranium miner’s shares were swapping hands for 79 cents apiece before grinding to a halt. In yesterday’s trade, the Paladin Energy share price dropped 0.63%.

So why did Paladin Energy enter a trading halt?

What did Paladin Energy announce?

The Paladin Energy share price was put on hold this morning due to a capital raise. This includes a fully underwritten institutional placement to raise $200 million. A non-underwritten share purchase plan will also take place to garner another $15 million.

New shares will be issued at 72 cents per share, an 8.9% discount on the last closing price of 79 cents. Funds from the capital raise will be used to restart the Langer Heinrich uranium mine in Namibia.

After the equity raise, Paladin expects to have pro forma cash of $259 million with no corporate debt.

Paladin says the equity raise will “de-risk” restarting operations at the mine and will also position the company well for more uranium marketing initiatives.

Paladin entered the trading halt prior to market open today pending the details of the capital raise.

Commenting on the news that’s halted the Paladin Energy share price, company CEO Ian Purdy said.

With the strength of the company’s existing uranium sales offtake with CNNC combined with the recent successful tender award and the continuing strong uranium market fundamentals, Paladin can now confidently work towards a formal commencement of the Langer Heinrich Mine restart project.

The extensive workstreams we have conducted reinforce our confidence in Langer Heinrich as a low risk, robust, long-life operation that is poised to take advantage of the improving uranium market conditions and deliver sustainable value creation for all of our stakeholders

Paladin recently agreed to sell historical mining information for the Agadez Project in Niger to Kopore Metals Limited (ASX: KMT). Shares in the company dropped 7% on 14 March, the day of this announcement.

Uranium sales tender award

Paladin also advised the market today it has received a uranium sales tender award. This will involve supplying uranium concentrates to a subsidiary of US-based Duke Energy Corporation.

The deal, subject to conditions, involves the supply of up to 2.1 million pounds of triuranium octoxide over six years from 2024. Paladin described this tender award as an “important step forward” in returning the Langer Heinrich mine back to production.

Paladin Energy share price snapshot

The Paladin Energy share price has exploded nearly 114% in the past year, while it has lost more than 10% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned 11% over the past year.

In the past week, Paladin shares have slumped more than 8%, while they have climbed nearly 3% in a month.

Paladin has a market capitalisation of about $2.1 billion based on the current share price.

The post Why is the Paladin Energy (ASX:PDN) share price frozen today? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Tuesday
• Why Nickel Mines, Paladin Energy, Tassal, and Westgold shares are dropping
• These 3 ASX 200 shares are topping the volume charts this Friday
• Why has the uranium rally got this ASX share blasting 22% higher in 2 days?
• Here are the top 10 ASX shares today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to extend its winning run. The benchmark index is currently up 0.35% to 7,540.6 points.

Here’s what is happening on the ASX 200 today:

Tabcorp demerger update

The Tabcorp Holdings Limited (ASX: TAH) share price is pushing higher today after the release of a demerger update. The gambling company intends to spin off its lotteries business and retain its wagering businesses. Shareholders will be given one new share in the lotteries business for every Tabcorp share they own. The Tabcorp board determined that the demerger is the most certain and timely path, with lower regulatory impediments, to maximise value for shareholders.

Mining shares storm higher

It has been a great day for ASX 200 mining shares such as BHP Group Ltd (ASX: BHP) and South32 Ltd (ASX: S32). Thanks to a decent rise in base metal prices during overnight trade, these mining giants are recording solid gains and helping to drive the S&P/ASX 200 Resources index 2% higher at lunch.

Tech shares slump

Things haven’t been anywhere near as positive in the tech sector today. A poor night of trade on the tech-focused Nasdaq index has led to the S&P ASX All Technology index falling 1% today. Among the worst performers in the sector have been Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) shares, which are down 4% and 3%, respectively, at lunch.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Champion Iron Ltd (ASX: CIA) share price with a 4.5% gain following a strong night for base metals. The worst performer has been the Harvey Norman Holdings Limited (ASX: HVN) share price with a 6% decline after trading ex-dividend.

The post ASX 200 (ASX:XJO) midday update: Tabcorp demerger update, BHP higher, Block tumbles appeared first on The Motley Fool Australia.

More reading

• Here’s why the Harvey Norman (ASX:HVN) share price is slipping today
• Are these ASX 200 mining shares in trouble?
• The BHP share price is up 4% and close to a record high
• Tabcorp (ASX:TAH) share price higher following $10b demerger update
• 2 ‘very interesting’ ASX shares to buy now as ASX 200 roars back

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc., Harvey Norman Holdings Ltd., and Xero. The Motley Fool Australia owns and has recommended Block, Inc., Harvey Norman Holdings Ltd., and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Magellan Financial Group Ltd (ASX: MFG) are sinking today and now trade around 1% lower at $16.16 apiece.

Investors continue selling Magellan shares today despite the fund manager announcing a fairly important update.

Magellan is now trading at a deep discount relative to the benchmark S&P/ASX 200 Index (ASX: XJO). The spread of this gap continues to widen in 2022.

It also trails the S&P/ASX 200 Financials Index (XFJ) by a similar amount over the past 12 months.

What did Magellan announce?

Magellan says its board has decided to proceed with a “pro rata non-renounceable bonus issue of options to eligible shareholders”.

The issue is for nil consideration, in other words, at no extra cost to shareholders.

Hamish McLennan, Magellan’s Chairman, said the options could be a value-add to investors – a welcomed call in such dire times for the stock.

“We believe the bonus issue of options at no cost to shareholders, and the $35.00 exercise price and 5-year term, provides a potential source of value for our shareholders,” McLennan remarked.

The firm notes its decision is in line with language in its interim results on 18 February, forming part of its capital management strategy.

“Eligible shareholders will receive one (1) Option for every eight (8) shares held at 5:00 pm (AEST)
on 7 April 2022,” Magellan noted.

“Each Option will provide shareholders with the right – but not the requirement – to purchase one Magellan share at an exercise price of $35.00 per Option, expiring on 16 April 2027,” it added.

The issuance will trade under the ticker “MFGO” if successfully quoted by the ASX, and is expected to be issued on 14 April, per the release. A prospectus will follow to shareholders on 21 April.

Magellan share price summary

It’s been a difficult time for Magellan shareholders of late, with 24% erased in value since trading resumed in 2022, and a 77% loss over the past 12 months.

The post Magellan (ASX:MFG) share price dips despite free gift bonanza appeared first on The Motley Fool Australia.

More reading

• Magellan (ASX:MFG) share price up another 7% to 1-month high
• ASX 200 (ASX:XJO) midday update: Telstra CEO steps down, Fortescue confirms E.ON deal
• Why did the Magellan (ASX:MFG) share price soar 7% on Tuesday?
• These were the worst performing ASX 200 shares last week
• 3 high-yield ASX dividend shares trading near 52-week lows

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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