Airport's Dividend Reinvestment Plan: Why bother?

Remember when I mentioned of me buying Malaysia Airport for its future growth as well as potential cashflow in the not too long future. I however am always mindful of companies like this, a monopoly which sometimes can have a wasteful mentality while continuing to be fed off other's hard work. Sometimes, doing fairly well can cause some companies to think of doing unnecessary things.

Well in this case, Malaysia Airport has announced a Dividend Reinvestment Plan a while ago and implementing it for its interim dividend of 6 sen. A Dividend Reinvestment plan is what it is in the name and it provides shareholders the option to choose between receiving the dividend in cash or get them reinvested in new shares of Airport - this time locked in at RM4.73 per share.

While provided with a choice is good as it allows shareholders with options, but to me it is just a waste of time and resources. Time means staffs time, while resources means wasting money on Investment Bank's fees (RHB), mailing fees i.e. stamps to Pos Malaysia etc.

If it needs to keep more cash, it just have to declare lower dividends - I am ok. If Khazanah (the major shareholder) needs more money, it can reduce its holdings by selling more shares. It's that simple.