5 Feb 2024 14:39

MDMG plans to complete redomiciliation process in early Q2, resume paying dividends

MOSCOW. Feb 5 (Interfax) - MD Medical Group Investments Plc, which manages the Mat' I Ditya (Mother and Child) chain of medical clinics, is planning to complete redomiciliation at the beginning of Q2, after which it will be able to resume paying dividends of up to 100% of its net profit, including from previous periods.

"We are at the final stage of redomiciling the company to the Russian Federation and expect to complete this process at the beginning of the second quarter of 2024. This will allow us to resume paying dividends, which according to the new dividend policy, will be up to 100% of the company's net profit, including net profits accumulated in past reporting periods," MDMG founder and CEO Mark Kurtzer said.

MDMG shareholders approved the company's change of jurisdiction from Cyprus to the Special Administrative Region (SAR) of Oktyabrsky Island (Kaliningrad Region) at the end of August. After redomiciliation to the SAR, the company will be called International PJSC MD Medical Group Investments.

It was reported that MDMG intends to maintain its current GDR program and listing status on the MOEX.

The MDMG board of directors approved a dividend policy in December 2023, which provides for the possibility of directing up to 100% of the company's IFRS net profit, including accumulated profits (if any), to dividends for the previous financial year, as well using interim financial statement information for the payment of interim dividends.

The policy document says that the payment of dividends is determined by the level of debt (the ratio of net debt/EBITDA should be no more than 3x). In addition, the payment of any dividends will depend on the amount of net income (including accumulated earnings), restrictions under existing agreements, available cash flow, dividends from subsidiaries, and MDMG's capex requirements, as well as capital market conditions, group development goals and other needs related to company financing issues.

Dividend payments must be made at least once a year, while interim dividends may be paid at the discretion of the board of directors.

The last time MDMG paid dividends was in the fall of 2022, based on the results of the first half of the year. For each ordinary share, 8.55 rubles were paid. The total payout was 642.3 million rubles.

MDMG, incorporated in 2010, is 67.9% owned by MD Medical Holding Limited, which is owned by MDMG founder and CEO Mark Kurtzer. Approximately 32.1% of MDMG shares are in free float.

MDMG combines 55 medical institutions, including 11 multidisciplinary hospitals and 44 outpatient clinics with a presence in 27 Russian regions.