Zaporizhstal to pay USD 114.2 mln in dividends
31 July 2008
At their EGM yesterday, Zaporizhstal (ZPST: BUY) shareholders voted to make a UAH 553.8 mln (USD 114.2 mln) dividend payout (DPS of USD 0.04, dividend yield of 9%), or 100% of the company’s 2007 net income. Dividends will be paid from September 2, 2008 to September 2, 2009. Eugene Cherviachenko: In our view, such a hefty dividend looks irrational, taking into account that the company has said it plans to invest almost USD 2.4 bln in CapEx over the mid-term. The distribution of profits among existing shareholders underpins our belief that the company’s owners are preparing for a strategic sale (see yesterday’s flash note).
