Emtel Sets Shareholder Vote on Shares-in-Lieu Dividends

In Short

• Emtel will hold a special shareholder meeting on 16 October 2026 in Ebene, Mauritius.
• Shareholders will vote on changing Emtel’s Constitution to allow dividends to be paid as ordinary shares.
• The notice is dated 22 September 2026.

What Happened

Emtel said it will convene shareholders on 16 October 2026 to vote on a proposed change to its Constitution. The change would allow Emtel to issue ordinary shares to shareholders who agree to receive shares, wholly or partly, in place of a proposed dividend or future dividends.

Today, the Constitution already allows shares to be issued instead of a dividend, but the board’s ability to do this is tied to the existing dividend process and shareholder approvals. Under the proposed amendment, the board would be able to issue ordinary shares in lieu of dividends “without the passing of any resolution of the Shareholders,” as long as the offer is made to all shareholders of the same class on the same terms.

In practice, this is a scrip dividend option. It is a choice where investors can take shares instead of cash. It can help a company keep cash on the balance sheet, while still rewarding shareholders.

The special meeting is scheduled to take place at Emtel’s offices at EmtelWorld in Ebene Cybercity, Republic of Mauritius. Shareholders who cannot attend can appoint a proxy, meaning another person can attend and vote on their behalf.

Why It Matters

For Emtel, the amendment could make dividend payouts more flexible. Issuing shares instead of paying cash can preserve liquidity, which is useful when a business wants to fund network upgrades, spectrum costs, or other capital spending.

For shareholders, the change could alter how returns are received. Cash dividends provide immediate income. Share dividends increase ownership but can dilute existing shareholders if many new shares are issued.

The vote is also a governance signal. It shifts more discretion to the board on how dividends are delivered, within the conditions listed in the Constitution and the legal requirements under section 56 of the Mauritius Companies Act.