Ituran Location and Control Ltd. (NASDAQ: ITRN, TASE: ITRN), today
announced that the Board of Directors has approved an increase in the
dividend policy, providing for an annual dividend distribution in an amount
not less than 50% of the Company's net income whereby the annual dividend
policy has historically been to issue approximately 25% of annual net income,
calculated based on the financial statements for the period ending on
December 31 of the fiscal year with respect to which the relevant dividend is
According to Company's current dividend policy and Israeli law, an annual
dividend will only be declared and paid if, in the discretion of the Board of
Directors, there is no reasonable foreseeable concern that the distribution
will prevent the Company from being able to meet the terms of Company's
existing and contingent liabilities, as and when due all based on Company's
needs as will be determined from time to time.
The distribution of dividends is further limited by Israeli law to the
greater of retained earnings and earnings generated over the two most recent
years. The Company's dividend policy may change from time to time at the
discretion of the Board of Directors.
The payment of dividends may be subject to Israeli withholding taxes.
Eyal Sheratzky, Co-CEO of Ituran said, "The Board made this decision
based on our exceptionally strong balance sheet combined with our ongoing and
continued strong results, especially as the global economy improves. We very
much support sharing the fruits of efforts and rewards with our shareholders,
and the increase in dividend policy does not change our ability to make
strategic acquisitions, if and when required."
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