ATLANTA, Ga. – The board of directors of boat builder Marine Products Corp. (Amex: MPX) has approved a three- for-two split of the company's outstanding common stock, it reported in a statement today.
The split will be effected by issuing one additional share of common stock for every two shares of common stock held, according to the company. The additional shares of common stock will be distributed on March 10 to holders of record at the close of business on February 10. No fractional shares will be issued. Fractional share amounts resulting from the split will be paid to shareholders in cash.
The Board of Directors has also declared a quarterly dividend increase of 50 percent to $0.06 per share payable March 10 to common shareholders of record at the close of business February 10. The cash dividend that was declared will be paid on the pre-split shares.
"Given the sustained strength in the company's stock price, we are able to make Marine Products' stock more widely available to potential investors,” said Richard A. Hubbell, Marine Products' chief executive officer. “We are pleased that shareholders can benefit from our results through a stock split. We believe that increasing the cash dividend and splitting the stock are not only a way to reward our current stockholders, but may also potentially increase the liquidity and investment appeal of our common stock."
Marine Products is a manufacturer of fiberglass boats, including Chaparral pleasure boats and Robalo sport fishing boats.