The first option targets the distribution of dividends in the amount of RON25.7 million, representing a gross dividend of RON0.05 per share, which, relative to Monday’s trading price, ensures a 2.16% yield, according to ZF calculations.
The difference of RON133.7 million from the profit is to be distributed to other reserves.
The proposal for the date of payment of dividends is October 8.
“In case of the approval of this distribution of profit, it becomes obsolete and it is removed from the agenda of the EGM convened for April 27 (28), 2020, the proposal for the approval a buyback program for the reduction of company’s share capital (Program I)”, the report reads.
For the second option, SIF1 proposes the distribution of the entire profit to other reserves for own financing sources, in order to support a share buyback program.
“From its own financing sources as provided by law, the Company will conduct a buyback program for 15,000,000 shares, to reduce the share capital by the cancelation of the repurchased shares”, the report also reads.
The minimum price per share would be RON0.1 and the maximum price per share RON4.9665, which means the total value of the program could reach RON74.5 million at most, according to ZF calculations.
SIF1 shares have been trading down 15.4%, amid deals worth RON25 million, securing the Fund a market value of RON1.2 billion.