Moscow. April 28. The Board of Directors of M. Video has recommended to shareholders not to pay dividends by the end of 2016. The annual meeting of shareholders “M. Video” will take place on 5 June in Moscow. It will be able to participate the shareholders registered in the register according to 11 may, said the message of the retailer.
That “M. Video” has no plans to pay dividends for 2016 before the deal with the “Samara” in March, said the main owner and the company President Alexander Tynkovan. The retailer had traditionally shared the profits with the shareholders, annually paying dividends. The company’s dividend policy assumes a payout of at least 60% of net profit. By the end of 2015, payments amounted to 20 rubles per share, in the amount of 3.6 billion rubles.
Dividends “M. Video” at the end of 2014 amounted to RUB 27 per share (total of 4.85 billion rubles). At the end of 2013, the company paid to shareholders of RUR 3.6 billion (20 rubles per share). In addition, in 2013 M. Video paid special dividends in the amount of 4.5 billion rubles (25 rubles per share).
M. Video is the largest Russian retailer of electronics and home appliances. The company’s net profit according to IFRS in 2016 increased by 22% compared to the year 2015, to 5,546 billion. Net sales of M. Video increased by 13.3% to 183,219 billion.
In December 2016 main owners of “M. Video” Alexander Tynkovan, Mikhail Tynkovan and Pavel Breev agreed to sell their shares to the group Safmar, representing the interests of members of the family Gutseriev-Shikhanovich. It is assumed that Safmar will acquire 100% of shares of investment companies, owned Tynkovan and its partners, which owns 57.7% of shares of “M. Video”. Price will be $7 per share.
The share capital of “M. Video” is divided into 179 million 768,227 thousand shares. Thus, the value of the company in the transaction was valued at $1.3 billion, and 57.7% of the will cost about $725 million