Business Context and Reporting Period
Company: Grupo Supervielle S.A. (NYSE: SUPV; BYMA: SUPV), a domestic universal financial services group in Argentina.
Filing Type: Form 6-K (Report of Foreign Issuer).
Date: May 15, 2020.
Subject: Announcement of the payment of cash dividends for the fiscal year ended December 31, 2019, following the Annual Ordinary and Extraordinary Shareholders Meeting held on April 28, 2020.
Key Financial Metrics
Dividend Distribution:
- Total Amount: P$ 426,000,000 (Argentine Pesos).
- Per Share: P$ 0.93273304036 per outstanding share.
- Per ADS: P$ 4.663665202 per American Depositary Share.
- Capital Coverage: Equivalent to 93.273304036% of the outstanding capital.
Payment Currency: Default payment is in Argentine Pesos. Shareholders may elect to receive dividends in US Dollars subject to specific exchange rate calculations based on Argentine government bond prices.
Taxation: Dividends are not subject to the 7% withholding tax under the Income Tax Law as they originate from profits taxed at 35%. However, withholding for Personal Assets Tax may apply where relevant.
Other Metrics: The filing does not provide specific values for revenue, net profit, cash flow, margins, debt, or liquidity for the reporting period.
Material Changes
Dividend Currency Status: The Company originally sought to pay dividends in US Dollars. However, the Central Bank of Argentina did not respond to the request to access the foreign exchange market within the stipulated period. Consequently, the Board of Directors released a voluntary reserve to facilitate the distribution of dividends in Pesos, with an optional mechanism for US Dollar conversion.
Guidance, Outlook, and Risks
Management Commentary: The dividend payment is contingent on the release of a voluntary reserve approved by the Board on May 14, 2020, due to the lack of response from the Central Bank regarding foreign exchange access.
Payment Logistics:
- Record Date: May 28, 2020.
- Payment Start Date: May 29, 2020.
- US Dollar Option Exercise Period: May 18, 2020, to May 22, 2020.
Risks and Contingencies:
- Exchange Rate Risk: The US Dollar Payment Option relies on a complex formula involving the offer price of Argentine government bonds in Pesos and the bid price in US Dollars on May 26, 2020.
- Regulatory Risk: The inability to access the foreign exchange market directly necessitated the use of a voluntary reserve and a bond-based conversion mechanism.
Investor Verification Checklist
- Verify the Record Date (May 28, 2020) to confirm eligibility for the dividend.
- Confirm the deadline to exercise the US Dollar Payment Option (May 22, 2020) if holding shares through a broker or depositor.
- Review the specific bond pricing mechanism (May 26, 2020) to estimate the potential US Dollar value of the dividend.
- Check with the depositary bank (The Bank of New York Mellon) for ADS holders regarding specific payment dates and procedures.
- Confirm tax withholding status regarding Personal Assets Tax for individual shareholders.