GILT - Gilat outlines tax requirements for special dividend

It was only a week ago that Gilat Satellite Networks (GILT) declared a special cash dividend of $0.63 per share (approximately $35M in the aggregate), but that amount will come with some conditions."In accordance with Israeli tax law, the company will withhold 25% of the gross amount of the dividend paid to shareholders," reads a press release. Shares of Gilat have pulled back following the news, down 4% to $6.90."After this distribution the company still has a very meaningful cash position, in addition to its real estate assets, that will allow it to execute on possible opportunities we are exploring," CEO Adi Sfadia declared.Adding it up: The aggregate amount of dividends payable to Gilat shareholders over the past quarter totals approximately $55M, or $0.99 per share, when including a $20M dividend distributed at the beginning of this month.

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Gilat outlines tax requirements for special dividend