Considering Wednesday’s stock exchange price of RON24 per share, Comvex’s dividend yield is 8.7%.
The company paid dividends between 2000 and 2005, but has not done so since 2006.
“Comvex is a company that accustomed its shareholders to the payment of dividends but the crisis prompted us to take a prudent approach and this is why we have not paid dividends in the last few years. But the company’s results are looking very well lately, so the shareholders decided to pay dividends,” said Viorel Panait, general manager of Comvex Constanta.
The proposal to pay dividends was on the agenda of Comvex’s General Meeting of Shareholders last year as well, but at the time the shareholders decided to add the profit to the company’s reserves, so the approval of this year’s dividends took stock exchange investors by surprise.
Comvex is controlled through Solidmet Bucharest by Corneliu Idu, one of the richest businessmen in Constanta.
In 2008 he fought Indian billionaire Lakshmi Mittal, who sought to take over the company through a EUR42 million stock exchange offering. The billionaire had previously bought a controlling stake of 35.9% in Comvex. After more than two years of court cases, Solidmet managed to obtain in court the annulment of underwriting to Comvex’s capital by Expert Placement, which is controlled by ArcelorMittal.
Following this decision, Solidmet increased its stake from 53.9% to 63.2%, while the company controlled by ArcelorMittal cut its stake in Comvex below the controlling threshold of 33% and now holds 28.1%.
ArcelorMittal Galati used to account for more than half of the business of the port operator in Constanta, but now it only accounts for 15%.
Comvex has budgeted a slightly lower profit for this year, of EUR4.1 million and a 12% turnover decline against last year, to EUR21.7 million.
(English version by Daniela Stoican)