International PPL may seek more firepower

International Pubic Partnerships is looking to reward shareholders with one hand and ask for a hand-out with the other in 2012.

The company says it is aiming to pay a dividend of 6p per share during 2012 but gave a heads-up to shareholders that a share issue could be on the cards in 2012 to fund some juicy acquisitions.

The company, which invests in infrastructure projects like hospitals and schools, says the dividend payment would be a 2.6% increase on the 2011 distribution and in line with its commitments at its flotation in 2006.

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The board currently intends to continue to offer a scrip dividend alternative to those investors who wish to receive securities in lieu of a cash payment.

On the subject of possible future fund raising exercises, the company continues to review its capital position against its likely investment opportunities and believes that if the opportunities currently under consideration come, as anticipated, to fruition, then it is likely the company will seek additional capital from both shareholders and new investors by way of an equity capital raise in 2012.

INPP was flat in morning trading despite the news. Over the year to date the stock is up 3%.

BS