In 2016, SIF Muntenia had a net profit of RON50.4 million, of which it plans to pay out dividends of RON32.3 million, which translates into a distribution rate of 64%. The gross dividend yield at closing price is 6.1% and it reaches 6.5% at the annual average value of trading one SIF Muntenia share, the company said. The unitary value of a gross dividend is RON0.04 and payment costs will be covered by shareholders.
As regards the second proposition, SIF Muntenia targets a distribution rate of 75% from the net profit for the repurchase of shares, in order increase the value of shares and reduce the discount used to trade SIF Muntenia shares on the Bucharest Stock Exchange, which stood at 51.9% at the end of January.
„The purpose of the share repurchase program is to reduce the share capital by annulling the repurchased shares,“ the company also said. The minimum price per share proposed is RON0.6 and the maximum price is RON1.4.