The amount proposed for dividends represents a gross dividend of RON0.13/share. At the current value of the shares it represents a record yield of 24%.
In addition to the cash distribution, the group’s board of directors proposes to increase the share capital of TeraPlast by RON43,58 million. The company will grant one free share for each four shares owned at the registration date of the share capital increase.
TeraPlast shares traded up 18% on the day in the first hour of trading on Tuesday, reaching RON0.644/share, following the special dividend and free share distribution announcement.
TeraPlast said it plans to retain over RON147 million that it will use for acquisitions or an additional distribution of dividends at the end of the year.
“We are interested in companies that allow synergies. We are looking at several criteria. First, the field of activity has to be similar or complementary to the ones TeraPlast Group activates on: recycling, flexible packaging, pipes and related products for water, gas and sewerage networks. Second, they must manufacture products with export demand, or which can dislodge imports from the domestic market. On the other hand, there must be companies that have high-performance production technologies. Financial performance is another key criterion. We are looking to companies that have similar indicators to those of TeraPlast and a low degree of indebtedness. These are cumulative conditions,” said Dorel Goia, TeraPLast board chairman.
The group has ongoing investments of over RON160 million this year, co-financed through state aid.
On February 26, TeraPlast Group announced the collection of RON 373 million following the closing of the steel products division to Kingspan.