AUB Group Limited (ASX:AUB) disclosed at its 2026 Annual General Meeting that the board determined a fully franked final dividend of 71 cents per share, bringing the total dividend for FY26 to 98 cents per share, representing an increase of 7.7 per cent on the prior year, while also confirming that an unsolicited proposal from investors affiliated with EQT, which later developed into a consortium proposal involving CVC, did not result in a transaction.

Key Points

  • Total FY26 dividend of 98 cents per share, fully franked, up 7.7 per cent on the prior year, within the long-term payout range of 50 to 70 per cent of Underlying Net Profit After Tax
  • Acquisition of Prestige in the UK was supported by a $400 million institutional placement, an $11 million Share Purchase Plan, and an additional $200 million debt facility
  • An unsolicited proposal from EQT-affiliated investors, later joined by CVC in a consortium, was assessed by the board with external advisers but did not result in a transaction
  • The FY27 CEO Long Term Incentive award will be brought to shareholders for approval at a General Meeting currently expected to be held in March 2027
  • Non-Executive Director Andrew Kendrick retired at the conclusion of the meeting; Gary Lennon was welcomed as a Non-Executive Director in May

FY26 Dividend and Prestige Acquisition Funding

The AUB Group board determined a fully franked final dividend of 71 cents per share for FY26, bringing the full-year total to 98 cents per share, an increase of 7.7 per cent on the prior year. The board stated this remains consistent with its long-term payout range of 50 to 70 per cent of Underlying Net Profit After Tax. During FY26, the company completed the acquisition of Prestige in the UK, which the board said materially advances its UK Retail strategy. The transaction was funded through a $400 million institutional placement, an $11 million Share Purchase Plan, and an additional $200 million debt facility.

EQT and CVC Consortium Proposal Assessment

During FY26, the AUB Group board considered an unsolicited proposal from investors affiliated with EQT, which subsequently developed into a consortium proposal involving CVC. The board, with the support of external advisers, conducted a comprehensive assessment and facilitated a period of due diligence. Those discussions did not result in a transaction. The board disclosed it approached the process with the objective of acting in the best interests of shareholders and assessing whether the proposal appropriately reflected AUB's value and prospects. The board stated it remains confident in AUB's standalone strategy.

LTI Framework Review and Governance Changes

The board confirmed there is no resolution at the 2026 AGM seeking approval for a CEO Long Term Incentive grant, as the LTI framework is currently under review. The FY27 CEO LTI award is to be brought to shareholders for approval at a General Meeting currently expected in March 2027. The board stated the LTI will retain an explicit measure of capital discipline and that EPS growth will remain a component, with no reduction to existing EPS CAGR hurdles. Future remuneration reports will include retrospective disclosure of quantified STI targets and actual performance against those targets. Gary Lennon, a Non-Executive Director of Transurban Group and Lendlease, joined the board in May with over 25 years of financial and risk management experience.