Zaporizhtransformator to pay UAH 106 mln in dividends

Zaporizhtransformator (ZATR) shareholders at an EGM this week approved a UAH 106.1 mln dividend for 2008 (20% of the company’s net profit. Shareholders pushed back a decision about the remaining UAH 421.7 mln in the company’s profit last year to a future EGM. Dividends will be paid from December 1, 2009 to December 31, 2010. Yegor Samusenko: The 20% dividend payout (UAH 0.048 per share and 2.7% dividend yield) is rather small for Zaporizhtransformator, which paid out 90% and 78% of 2006 and 2007 net income, respectively. Since the company has no significant modernization program and the major shareholder of Zaporizhtransformator, Konstantin Grigorishyn (controls ~99% by our estimates), might need money to participate in Oblenergo privatizations next year, we think most of remaining 80% of net profit for 2008 will be distributed in dividends at the next EGM, the timing of which might be connected to the announcement of Oblenergo privatization auctions.