Dividend Information

Chorus expects to pay a fully imputed dividend of NZ25.5 cents per share in FY13, subject to there being no material adverse changes in circumstances or operating outlook.  An interim dividend of 10.0 cents per share will be paid on  12 April 2013. The interim dividend will be fully imputed. In addition, a supplementary dividend of 1.7647 cents per share will be payable to shareholders who are not resident in New Zealand.  

Following the 8 February announcement from the Minister of Communications and Information Technology, Chorus considers that it has sufficient near term certainty to announce its FY14 dividend guidance of a fully imputed dividend of 25.5 cents per share on an estimated 40/60 split basis (subject to there being no material adverse change in circumstances, operating outlook or Chorus' guidance for expected total UFB communal build costs of $1.7 to $1.9 billion).

As there is some time before outcomes of the Government's reviews will be clear, Chorus remains unable to provide longer term dividend guidance. The Board currently expects to announce longer term dividend guidance when the outcomes from the Government's reviews have been announced. At that stage, Chorus will also have an updated view of how its capital expenditure programmes are tracking.

Note: If at any time Chorus' credit rating falls below investment grade while Crown Fibre Holdings Debt Securities remain outstanding, Chorus will be prohibited from paying distributions on Chorus Shares while its credit rating remains below investment grade without CFH's approval.

The Chorus Board has approved the implementation of a Dividend Reinvestment Plan (the Plan). The Plan is intended to increase flexibility for eligible shareholders and provide Chorus with enhanced capital management.

Chorus has elected not to offer participation under the Plan to shareholders whose address is outside New Zealand or Australia.

Eligible shareholders can choose to have Chorus reinvest all or part of their future dividends in additional Chorus shares. This provides a cost effective and convenient way for shareholders to increase their investment in Chorus:

• There are no charges for participation in the Plan
• Shares purchased via the Plan do not incur brokerage fees
• Dividends are reinvested at a discount to the prevailing market price

Here is the Dividend Reinvestment Plan Offer document: