Only a fraction of this amount might return to the stock market in form of investment, as half of the money will go out of the country. According to ZF’s calculations, the government might collect about RON429 million in dividend tax in June. The dividend tax is 16%, withheld at source. The government will also collect about RON304 million in net dividends from Petrom, where it owns 20.64% via the Economy Ministry.
The largest amount of dividends will go to the accounts of foreign investors. OMV for instance, will get RON752 million from Petrom, the foreign funds owning stock in Fondul Proprietatea (FP.RO) should collect some RON216 million, Russian-held Vimetco should get RON159 million from Alro (ALR.RO) and the Societe Generale will receive RON58 million from BRD. All in all, the amount of dividends leaving the country is about RON1.35 billion, which will renew pressures on the leu.
Fondul Proprietatea (FP.RO) in turn will collect some RON320 million in net dividends from Petrom, Alro and BRD, but this money will go its shareholders as dividends or could be used for stock repurchase, because the fund has frozen investments for now. It is due to pay RON531 million in dividends itself in June but only RON185 million will go to Romanian local investors. Most of the local shareholders of the fund are individuals who do not usually invest on the stock market, therefore they will find other uses for the money.
According to ZF’s calculations, the SIFs (regional investment funds) will collect dividends of RON51 million and the pension funds and local mutual fund, too, could get tens of millions of lei, too, which money may find its way back on the stock market in a matter of months.
This is the first round of dividend payment on the stock market. The SIFs, Transgaz, Transelectrica and other listed companies are expected to pay almost one billion lei in dividends from August through October.
(English version by Loredana Fratila-Cristescu)