Excelsior Capital declares 241.43 cents per share special dividend as wind-up accelerates
Excelsior Capital Limited (ASX: ECL) has declared a special interim fully franked dividend of 241.43 cents per share, payable on 20 March 2026. The Excelsior Capital wind-up dividend represents the first of two planned tranches as the listed investment company progresses its orderly capital return to shareholders, having now realised approximately 55% of its investment portfolio.
The dividend will be paid to shareholders on the register as at 6 March 2026, with shares trading ex-dividend from 5 March 2026. Net Tangible Assets stood at $110.4 million or $3.81 per share as at 31 December 2025.
Special Interim Dividend Key Dates
- Ex-Dividend Date: 5 March 2026
- Record Date: 6 March 2026
- Payment Date: 20 March 2026
The announcement delivers on ECL’s commitment to return capital to shareholders following the decision to wind up the company. Shareholders can now lock in a substantial near-term cash return with a clear timeline, whilst a second tranche dividend is expected upon completion of remaining investment redemptions.
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What is a wind-up dividend and why does it matter for LIC investors?
When a Listed Investment Company (LIC) winds up, it systematically converts its investment portfolio into cash and returns that capital to shareholders. This process differs fundamentally from normal dividend payments or share buybacks.
ECL’s capital return involves two distinct mechanisms. The fully franked special dividends require no shareholder approval under ASX Listing Rule 11. In contrast, the planned Return of Capital of approximately $28 million requires a shareholder vote under section 256C of the Corporations Act, expected to occur by the end of May 2026.
Fully franked dividends carry significant value for Australian investors. The franking credits attached to these payments can reduce individual tax liabilities or generate refunds for eligible investors, effectively boosting the after-tax return. For LICs trading at a discount to Net Tangible Assets, wind-ups can unlock embedded value by distributing assets at their underlying worth rather than the discounted market price.
Understanding this distinction matters because it clarifies how and when shareholders receive capital, and what administrative approvals are required at each stage.
Capital return timeline and remaining portfolio value
ECL has structured its capital return across multiple stages to manage liquidity and regulatory requirements efficiently. The two-tranche dividend structure sees the first payment of 241.43 cents per share settling on 20 March 2026, with the second tranche payable upon completion of investment redemptions and calculation of remaining net proceeds.
Following the dividends, ECL expects to return approximately $28 million via a formal Return of Capital, subject to shareholder approval at a General Meeting anticipated by the end of May 2026. Payment would follow shortly after approval, adjusted for liquidity requirements.
The company intends to delist from the ASX after the Return of Capital and convene a further General Meeting to place the entity into voluntary liquidation, expected prior to 30 June 2026. However, approximately $8 million of investments face lengthy redemption periods that may extend beyond this date. Any remaining value after delisting will be distributed to shareholders during the winding-up process, subject to further shareholder approval.
| Milestone | Expected Timing | Estimated Value |
|---|---|---|
| Tranche 1 Special Dividend | 20 March 2026 | 241.43 cps |
| General Meeting (Return of Capital) | End May 2026 | — |
| Return of Capital Payment | Post-GM | ~$28m |
| Delisting & Voluntary Liquidation | Prior 30 June 2026 | — |
| Final Distribution (extended redemptions) | Post-delisting | ~$8m remaining |
The staged approach provides shareholders with visibility on key decision points ahead, whilst allowing ECL to manage the orderly realisation of investments. The company continues to sell down and redeem remaining holdings in a managed approach.
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H1 FY26 financial results in context
The company reported a statutory loss of $2.1 million for the half-year ended 31 December 2025, compared to a $1.8 million profit in the prior corresponding period. Portfolio revenue declined to a loss of $0.5 million, down from a $3.5 million profit in H1 FY25.
These results require careful interpretation. ECL’s financial statements have been prepared on a winding up/liquidation basis, rather than a going concern basis. Performance metrics hold limited relevance when the strategic objective has shifted from portfolio optimisation to orderly realisation of assets.
The relevant metric for shareholders tracking value is Net Tangible Assets per share, which stood at $3.81 as at 31 December 2025. This figure represents the underlying value being returned through the wind-up process.
Key financial metrics for H1 FY26:
- Portfolio revenue/(loss): -$0.5 million (versus +$3.5 million in H1 FY25)
- Net profit/(loss) after tax: -$2.1 million (versus +$1.8 million in H1 FY25)
- Net Tangible Assets (after tax): $110.4 million / $3.81 per share
The half-year results are secondary to the capital return process now underway. Focus remains on converting the remaining investment portfolio to cash for distribution to shareholders.
Shareholder action required
To ensure direct credit of cash dividends, shareholders must update their details with the share registry, MUFG Corporate Markets (AU) Limited. Required information includes email address, bank account details, and tax file number (if applicable).
This administrative step ensures timely payment of both the March 2026 special dividend and subsequent capital returns. Shareholders should complete these updates as soon as possible to avoid delays in receiving distributions.
The dates outlined in ECL’s announcement remain indicative and subject to ASX Listing Rules and the Corporations Act. The company reserves the right to adjust timing without prior notice.
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