UPDATE: Rostelecom cuts 2016 dividends by 9% on year to 15 bln rbl

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MOSCOW, Jun 19 (PRIME) -- Shareholders of Russian state-controlled telecom operator Rostelecom decided on Monday at an annual general meeting to pay out 15 billion rubles in dividends for 2016, as compared to 16.5 billion rubles paid for 2015.

Every common and preferred share will pay 5.387 rubles, while they brought 5.92 rubles per share for 2015. The shareholders’ register for dividends will close on July 7.

According to the dividend policy, Rostelecom will pay dividends of no less than 45 billion rubles for 2015–2017. The company should spend at least 75% of its free cash flow in dividends, as the policy demands.

The total amount of the 2016 dividends exceeds free cash flow of 13.298 billion rubles and the net profit of 12.249 billion rubles, calculated under International Financial Accounting Standards.

The shareholders also elected a new board of directors consisting of 11 people, including the first time President Mikhail Oseyevsky, who became head of the operator in March.

VTB Capital General Director Alexei Yakovitsky also debuted in Rostelecom’s board as an independent director.

The board was left by Chairman of managing company April-Capital’s board, Anatoly Milyukov, and Rostelecom’s Vice President for legal affairs, Mikhail Irzhevsky. All the other members proceeded from the previous board.

The shareholders also approved remunerations to the board’s members, who are not government officials, at up to 4 million rubles per each. Members of the audit committee will get up to 400,000 rubles and up to 320,000 rubles for work on other committees.

The government owns 45.04% in Rostelecom via the property management agency; state development bank Vnesheconombank holds 3.96% of the operator; and Rostelecom’s unit, Mobitel, holds 16.24% of the parent company.

(57.7408 rubles – U.S. $1)

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