21 May 2012, BioSpectrum Bureau , BioSpectrum
Singapore: ResMed plans to initiate a quarterly dividend of $0.17 per share during the first quarter of its fiscal 2013, beginning July 1, 2012. The decision, which is subject to declaration by the board of directors, would eneable ResMed to pay the dividend in US currency to holders of its common stock trading on the New York Stock Exchange (NYSE).
Holders of Chess Depositary Instruments (CDIs), who are trading on the Australian Stock Exchange, will receive an equivalent amount in Australian currency, based on the exchange rate on the record date, and reflecting the 10:1 ratio between CDIs and NYSE shares. ResMed expects the dividend to be unfranked for Australian tax purposes.
"Over the past several years, we have used some of our cash to invest in our business through increased research and development, market development, acquisitions, and capital expenditures," said Dr Peter C Farrell, chairman and CEO, ResMed.
"We have also used some of our cash to repurchase shares. We expect to continue all these activities in the future. Even with these investments, we have sufficient funds for strategic opportunities and to operate our business and therefore, we are initiating a dividend for our shareholders. We are confident about our future and see exciting opportunities ahead."
Additionally, ResMed's board of directors reaffirmed the current process for its CEO succession. The board of directors requested that Dr Peter Farrell remain the CEO until the end of calendar year 2013, which he has agreed to do. In the meantime, potential internal CEO candidates will continue to be evaluated. When the board decides that there are suitable internal candidates for the role, the board plans to compare and contrast those candidates with potential external candidates. The process is expected to be completed by the end of 2013.