Russia’s MMK may raise Jul–Dec 2016 divs to 60% of free cash flow

MOSCOW, Feb 15 (PRIME) -- Russia’s Magnitogorsk Iron and Steel Works may allocate 60% of its free cash flow on dividends for July–December 2016, the company said in a statement on Wednesday.

“On the back of strong profitability and lower debt load, the company’s management decided to recommend that the board of directors pay dividends representing 60% of free cash flow for the second half of 2016,” the company said.

“The management continues to adhere to the strategy of increasing return on equity, and plans to offer the board to amend dividend policy and increase the dividend payout ratio to at least 50% of free cash flow,” the company added.

Currently, the board of directors has a threshold for dividend recommendations of no less than 30% of free cash flow. Previously, MMK paid 0.72 rubles per share, or a total of 8.046 billion rubles in January–June 2016 and 0.31 rubles per share, or a total of 3.464 billion rubles in final dividends for 2015.

According to the company’s Web site, its shareholders are Mintha Holding Limited, beneficiary owned by Chairman of MMK Board of Directors Viktor Rashnikov, with an 87.26% stake; The Bank of New York Mellon, beneficiaries of which are owners of global depositary receipts of MMK, with 4.88%; and other shareholders with 7.86%.

(57.7388 rubles – U.S. $1)

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