The company proposes to pay a partial gross dividend per share of RON0.13%, it said in a meeting notice Friday. At current trading prices, the proposed dividend carries a yield of 16%.
Shareholders are also summoned to approve a capital increase by RON43.5 million from the current RON174.3 million, by issuing 435,799,880 new shares at a face value of RON0.1 and the setting of a price of RON0.44 for the compensation of fractional shares.
The company said the extra capital would be used to sustain its current business.
The newly issued shares won’t change the shareholders’ quotas and will be freely distributed to all registered shareholders. Each shareholder registered will be issued one free share for every four shares held.
TeraPlast also seeks to amend a buyback decision from August 2020 to raise the maximum price offered to RON1/share from RON0.45. The buyback program targets a maximum of 5.5 million shares, to be offered for free to the employees and the senior employees of the member companies of Teraplast Group within a stock option plan program.
TeraPlast group reported a net consolidated profit of RON200.6 million for the first quarter of 2021, from RON6.14 million in the same period last year, including RON189.4 million proceeds from the sale of its Steel division. Remaining business lines posted a profit of RON11.7 million double compared with the earnings reported for the first quarter last year.