Safmar to make decision on M.Video dividends in 2017, think about long-term policy
MOSCOW. May 2 (Interfax) - M.Video , Russia's largest consumer electronics and home appliance retailer, will continue to adhere to a policy of paying dividends in the long term after being taken over by Safmar Group, but a decision has not been made about upcoming payouts.
"The board of directors will make a decision for 2017 in the course of the year, taking into account whether money will be invested in development or in dividends. But in the long-term future, of course, we're considering dividend policy for all shareholders," the son of Safmar founder Mikhail Gutseriev, Said Gutseriev said in a conference call.
M.Video announced on April 28 that its board had recommended not paying dividends for 2016. M.Video principal shareholder and president Alexander Tynkovan said in March that the retailer was not planning to pay out dividends ahead of the deal with Safmar.
In previous years, the retailer regularly shared profits with shareholders and its dividend policy calls for paying out at least 60% of net profit. The company paid out 20 rubles per share, or at total of 3.6 billion rubles for 2015; 27 rubles per share or a total of 4.85 billion rubles for 2014; and 20 rubles per share or a total of 3.6 billion rubles for 2013. In addition, M.Video paid out special dividends in 2013 in the amount of 4.5 billion rubles or 25 rubles per share.
M.Video increased net profit by 22% to 5.546 billion rubles in 2016, as net revenue grew by 13.3% to 183.219 billion rubles.
Safmar announced on April 28 that it had closed a deal to buy 57.7% of M.Video for $7 per share from the retailer's principal beneficiaries - Alexander Tynkovan, Pavel Breyev and Mikhail Tynkovan.
On the same day, the retailer announced that it had received an offer from Safmar to buy shares from minority shareholders at the same price of $7 per share. M.Video's charter capital is split into 179.768 million shares, so the deal values the whole company at $1.3 billion.