Magnitogorsk Iron and Steel Works announced that a meeting of the MMK Board of Directors was held on April 22.
The board recommended that MMK’s annual general meeting of shareholders (AGM) approve of dividends for the 2015 financial year in the amount of RUB 0.31 per common share of issued stock, and that the AGM set the cut-off date for eligibility to receive the dividend as the end of the business day on June 7, 2016.
The Board based its calculation of dividends for 2015 on MMK’s IFRS net profit in 2015, adjusted for one-off non-monetary losses (FX exchange loss of $173 million and asset impairment loss of $179 million). The adjusted net profit used for the dividend calculation thereby increased by $352 million to $773 million.
The board also requested the CEO of MMK to provide a new dividend policy which would set the following:
– dividend pay-out ratio as a rule amounts to 30% from IFRS free cash flow;
– dividend payment as a rule is done on a semi-annual basis.
The board added the following people to the list of candidates for the board: Viktor Rashnikov, Nikolai Lyadov, Olga Rashnikova, Sergey Sulimov, Pavel Shilyaev.
At the meeting the board outlined the scope of documents (information) to be sent as reference to shareholders prior to the AGM and approved of the order in which such documents (information) have to be presented.
The board issued a recommendation for the AGM to consider approving of the board-nominated company auditor – PriceWaterhouseCoopers Audit – and set the amount of payment for its services.
The board has approved of the ballot to be used for voting on the items listed on the AGM’s agenda. (Ukrainian metal)