The first option is the distribution of dividends, respectively, a dividend distribution rate of 21%, and the second option is the share buyback for the reduction of the share capital.
For the first option, the amount of RON88.4 million is proposed to be distributed to other reserves, representing the company’s own sources of development, and the amount of RON23.5 million is proposed to be distributed to shareholders as dividends.
The Fund announced a gross dividend of RON0.03 per share, which, relative to the current trading prices in Wednesday’s session, has a 4.5% yield, according to ZF calculations.
The proposal for the dividend payment date is September 21, 2020.
For the second option, the Fund proposes the repurchase of a maximum 20.6 million shares, representing 2.56% of the total number of shares issued by SIF Muntenia, in order to reduce the share capital.
“The purpose of the proposal is to increase the value of the shares and reduce the discount on which SIF Muntenia shares are traded on the Bucharest Stock Exchange”, the Fund said in a stock market statement.
The minimum price per share is RON0.1 and the maximum price per share is RON2.03, which means the value of the share repurchase program may reach nearly RON42 million.
Duration of the program: maximum 18 months from the date of publication of the decision in the Official Gazette of Romania.
SIF Muntenia shares have been trading down 18.3%, amid deals worth RON21.3 million, securing the Fund a market value of RON557 million.