Libstar to postpone final dividend due to coronavirus

South African food producer Libstar on Thursday joined a long list of companies deferring dividend payments as firms look to preserve cash during the coronavirus outbreak that has forced non-essential businesses to temporarily shut down.

Libstar had been due to pay R170.5 million ($9.21 million) in final dividends on April 14 to shareholders. That has now been postponed until the release of the firm’s first half results on September 2, Libstar, which also produces certain food items for Woolworths, said in a statement.

“In light of the uncertainty as to the duration and extent of the impact that Covid-19 may have on the operations within the markets in which Libstar operates, the board considers it prudent… to preserve the company’s financial liquidity to the fullest extent possible,” it said.