Barranquilla-based window and glassmaker Tecnoglass, Inc. (NASDAQ: TGLS) will issue its third quarter dividend of $0.14 USD per share on October 27.
The payout, an increase from the $0.125 per share it had paid out in previous quarters, will be made to all shareholders of record as of the close of business on September 29. This “represents one of the highest dividend yields amongst our U.S.-listed industrial peers,” according to José M. Daes, chief executive officer of Tecnoglass.
Photo: One of the plate movers used in the window manufacturing process at the Tecnoglass plant in Barranquilla, Colombia. (Credit: Tecnoglass, Inc.)
The dividend will be paid in cash or with the company’s ordinary shares on the NASDAQ, according to Tecnoglass, which also produces architectural glass and associated aluminum products for the window market.
The election period for the method of payment will begin on October 2 and last through October 20 at 5:00 pm. If no election is made, the default option will be to pay out the dividend in ordinary shares, which will be valued at the average closing price of shares during the 10-trading-day period from October 9 through October 20.
Daes was pleased to announce the increase to the dividend and highlighted that the company is optimistic about its previously announced $35 million USD acquisition of the Florida-based Giovanni Monti and Partners Consulting and Glazing Contractors, Inc. (GM&P), which is expected to be finalized next May.
“We have a lot of value-enhancing initiatives underway at Tecnoglass, including a 12% increase to our dividend, a seamless integration of the GM&P acquisition, ongoing cost rationalization efforts, and an expanding project backlog,” said Daes.
On the GM&P acquisition, the Tecnoglass head added that “our strong balance sheet affords us ample flexibility to fund the remaining purchase price of this acquisition through a range of capital resources available to us, which we look forward to completing through an accretive transaction by May 2018.”