MDM Bank decides against paying dividends for 2010, tradable prefs to be converted into common shares
MOSCOW. June 20 (Interfax) - Shareholders in MDM Bank, at their annual meeting, decided to convert the bank's third type preferred shares into common shares, the bank said in a statement.
The bank will convert 284,163,460 type three prefs into common shares. Following this process, MDM Bank will not have any shares in circulation on the stock market.
"The conversion has been confirmed. Enough shareholders voted in favor," a spokesperson for the bank told Interfax, declining to specify how many shareholders voted in favor of the conversion.
A spokesperson for MDM Bank earlier said that the share conversion would only be possible if at least 75% of the shareholders vote in favor of this measure.
MDM Bank's board of directors earlier settled on a buyback price for the third type prefs at 16.4 rubles per share.
The shareholders also decided against paying dividends on common and preferred shares fro 2010. The bank's net profit from last year will be kept at its own disposal.
MDM Bank was 15th biggest bank by assets in Russia at the end of the first quarter of 2011 according to the Interfax-100, compiled by the Interfax Center for Economic Analysis.
