Today I came across announcements and articles on Discovery(DSY). Interestingly the second article I noticed was that Discovery has announced that all their employees are to be vaccinated by January but this is a discussion for another time.
What I did take note of was the article on Moneyweb which stated that DSY has “scrapped its annual dividend again” and went further to state that “it (DSY) may have to raise equity capital to cover costs linked to its investment in China’s Ping An”.
Here is the link to the article published on Moneyweb on the 2nd of SEPTEMBER 2021 (Discovery scraps dividend, flags possible capital raise - Moneyweb)
DSY has not paid a dividend since the COVID-19 Pandemic took hold in 2020, and the article also refers to the fact that DSY also stated that the uncertainty surrounding the impact of the pandemic meant that dividend payments would be withheld for now.
Further along the article reports that DSY would require a further R1.5 billion more in capital to meet regulatory requirements when referencing DSY’s partnership with Ping An in China. Apparently DSY CEO Adrian Gore stated that this capital would be sourced through capital raising rather than debt.