The board of directors of the Russian metals and mining group Mechel has recommended paying no dividends on common shares and 10.28 rubles per preferred share, or a total of 1.426 billion rubles, in dividends for 2016, the company said in a statement on June 8.
The record date for the dividends is July 11.
The shareholders will consider the recommendation at an annual general meeting on June 30.
Mechel’s agreements with banks restrict dividends the company may pay and prohibits payment of dividends without creditor approval.
Mechel received its first net profit over several years in 2016, when it posted a 7.126 billion ruble net profit as calculated under International Financial Reporting Standards against a 115.163 billion ruble net loss in 2015. In previous years, the company paid 0.05 rubles per preferred share and no dividends on common shares.
Mechel’s the core owner is Igor Zyuzin, chairman of the company’s board of directors, who owns 55.04% of common shares. Mechel’s subsidiary Skyblock limited owns about 40% of preferred shares in the company, and about 60% of preferred shares are in free float. (Prime/Ukrainian metal)
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