DniproSpetsStal AGM Votes To Pay 99% Of 2006 Net Income As Dividends

At their AGM yesterday DniproSpetsStal’s (DNSS: BUY) shareholders voted to pay roughly 99% of the company’s 2006 net income (USD 38.4 mln) in dividends – about USD 35.7 per share. In addition, the company voted to pay dividends from its 2004 net income bringing the total DPS to about USD 56 per, and dividend yield to 14%. The ex-dividend date is set for March 21, 2007 and dividends will be paid from Mar 20, 2007 to Sep 20, 2007. Andriy Gostik: The AGM signals the end of a shareholder conflict that prevented shareholder meeting in 2006. We expect a new controlling owner, Interpipe group, to improve corporate governance and transparency at DNSS, like Interpipe is already doing with its pipe & wheel business – Nyzhnodniprovsky Pipe (NITR: HOLD) and Novomoskovsk Pipe (NVTR: HOLD).