Overview of PPK Group's special dividend announcement

PPK Group Limited (ASX:PPK) has announced a special in-specie dividend for its shareholders, involving the distribution of shares in Li-S Energy Limited (ASX:LIS). The Board has decided to cede control of LIS and deconsolidate from an accounting perspective, with just under 26m LIS shares to be distributed to all eligible PPK shareholders on the record date. The record date for this special dividend is set for Wednesday, 16 October 2024.

Executive commentary on the special dividend and deconsolidation

PPK's Managing Director, Marc Fenton, expressed gratitude for the shareholders' support and highlighted the Board's decision to pay the special dividend as a gesture of recognition and value return. Fenton emphasized that the deconsolidation of LIS will simplify PPK's financials, making them more accessible for shareholders and investors. He also noted that the separation will allow a clearer focus on the performance of other group companies, such as PowerPlus Energy and Craig International Ballistics. Fenton further mentioned the significant support provided by the PPK team to LIS over the past five years, enabling LIS to evolve into a customer and engineering-led manufacturer with Australia's largest pouch cell manufacturing facility. He reiterated PPK's confidence in the long-term value of LIS and the expectation of retaining the position as the largest shareholder in LIS post-deconsolidation.

Summary of PPK Group's special dividend and future outlook

PPK Group Limited (ASX:PPK) has announced a special in-specie dividend involving the distribution of around 25.95m LIS shares to eligible PPK shareholders. The company aims to simplify its financials by deconsolidating from LIS, allowing a clearer emphasis on the performance of other group companies. The Board's decision reflects confidence in the long-term value of LIS, with PPK expecting to retain its position as the largest shareholder in LIS post-deconsolidation. The record date for the special dividend is Wednesday, 16 October 2024, with the payment date set for Thursday, 31 October 2024. Shareholders will receive 1 existing share in LIS for every 3.5 shares held in PPK on the record date, with the actual value depending on the closing price of LIS shares on the day prior to the payment date. Foreign Shareholders will have the option to appoint a Sales Agent for the sale of the distributed shares, with the proceeds being remitted to them. The company remains optimistic about the future outlook and the value opportunity for PPK shareholders.