BELUGA GROUP announces The Board of Directors’ recommendations about the dividends’ amount for 2019
The Board of Directors meeting on 28 April has recommended to the Annual General Meeting approve the payment of dividends for 2019 in the amount of 32 rubles per share (before tax), distributing 505,6 mln rubles in total.
To pay dividends on shares outstanding (excluding remaining treasury shares*) will be allocated 407.8 million rubles, which is 30% of BELUGA GROUP’s net consolidated profit under IFRS for 2019.
The annual general meeting will be held on June 1, 2020 in absentia. A list of entitled attendees will be compiled as of May 11, 2020. It has been recommended that the list of shareholders entitled to receive the dividends be drawn up as of June 12, 2020.
The Chairman of the Board of Directors Nikolay Belokopytov commented on this corporate event as follows: "The Board of Directors decided to recommend the General Meeting of Shareholders to pay dividends. There are several factors that promoted this decision: the net profit of 1.4 billion rubles that the company made in 2019; positive operating results the company demonstrated in Q1 2020; ongoing development of corporate governance and improvements in the social responsibility of our business. These achievements have allowed the company to recommend dividend payment even in the current difficulties brought on by the COVID-19 pandemic. I would also like to note that the Board of Directors intends to recommend that 30–50% of the company's net profit be allocated to regular payment of dividends depending on the free cash flow of the company. Our confidence in good performance of the group is based on the consistent implementation of a business diversification strategy, improvements in the efficiency of our operations as well as on the growth potential of BELUGA GROUP."* As of December 31, 2019, BELUGA GROUP held 6,689,112 quasi-treasury shares. On March 18, 2020, an extraordinary general meeting passed a resolution that the company should buy back 3,600,000 of its shares in order to cancel more than half the quasi-treasury shares that it holds.