2 Oct 2018 14:29

MMK to pay 1.589 rubles a share in Q2 dividends

MOSCOW. Oct 2 (Interfax) - Shareholders in PJSC Magnitogorsk Iron & Steel Works (MMK) voted at an extraordinary meeting to accept a dividend of 1.589 rubles per share for the second quarter of 2018, the company said.

The company paid 80.1 kopecks a share for Q1 2018.

The dividend record date for the Q2 dividends is October 9.

The overall payout will be $281 million or all of free cash flow for the period.

The MMK board of directors confirmed a new dividend policy last year, increasing the payment ratio from 30% to at least 50% of free cash flow (FCF) subject to net debt/EBITDA being below 1x. If net debt/EBITDA is over 1x, the payout will be 30% of FCF. The new dividend policy provides for payments to shareholders on a quarterly basis - the company had previously paid them twice per year.

MMK is one of Russia's biggest steel companies. Viktor Rashnikov, chairman of the MMK board of directors, is the company's main beneficiary - he controls 84.26% via Mintha Holding. The free float is 15.74%.

The company has just over 11.174 billion issued ordinary shares which are traded on the Moscow Exchange and on the London Stock Exchange as GDRs (one receipt represents 13 shares).