Metinvest to receive USD 148 mln in dividends from JV by year end
25 June 2018
The shareholders of Southern Iron Ore plant, a joint
venture of Metinvest (METINV), Ukraine’s largest steelmaker, approved at their
June 21 EGM the company’s decision to declare
USD 381 mln in dividends, according to the EGM’s resolution published on June
23.
In detail, the shareholders approved at the EGM the UAH
1,342 mln (USD 51 mln) in dividends for 2013 (41% of 2013 net profit) and UAH
8,606 mln (USD 328 mln) for 2017 (96% of 2017 net profit). Metinvest, which
owns 45.9% of Southern Iron Ore, would receive a total of USD 174 mln, or USD
148 mln after the 15% tax.
The record date for the dividend eligibility is July
7. The payments will commence on July 11 and must be completed by Dec. 21
(within six months of the EGM date).
Recall, in September 2017 Southern Iron Ore declared a total of USD 600 mln in dividends
payable by March 5, 2018, including USD 234 mln (after tax) to Metinvest.
Dmytro Khoroshun: Southern
Iron Ore will pay Metinvest a total of approximately USD 381 mln after tax for
the 2013-2017 dividends. It is positive for Metinvest to have this liquidity
available, because the holding has many uses for it, including supporting its owner, SCM, with dividends,
acquiring a stake in European rerolling plants,
investing in the modernization of its assets,
and supporting its booming revenue with working capital investments.
