Rusagro may pay out missed dividends after re-registration
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Agricultural producer Rusagro plans to return to paying dividends as soon as possible, Aleksey Kulchitsky told the company’s IR. Now Rusagro cannot pay dividends due to certain legal difficulties, however, a decision may be made in the coming months after the change of the company’s jurisdiction.
“If we talk about past years, then this is probably the question, and we will return to it as soon as we get the opportunity to distribute dividends,” Mr. Kulchitsky answered the question of the moderator programs Market Power, who, recalling certain legal complexities, asked about the possibility of paying dividends. The moderator asked whether these would be payments for the past period or an extra dividend payment.
“In general, it would probably be logical to assume that part of the funds that were accumulated, they were still directed to the same M&A transactions, business development. But this does not negate the fact that by the time it is accepted and the opportunity to distribute dividends appears, we will have accumulated enough cash to pay off previous years as well and please people for the long wait with bonuses, ”commented the top manager of Rusagro. He notedthat the company remains committed to the previous dividend policy – at least 50% of net profit.
Redomiciliation is a change in the jurisdiction of the company, which preserves the structure of the business and its internal and external relations. Rusagro registered In Cyprus. Company founder Vadim Moshkovich located under sanctions.
Alexey Kulchitsky said that while Rusagro does not have the technical ability to pay dividends, it will focus on expanding its business. “The best way to spend cash in the current situation is to expand production, including mergers and acquisitions,”— informed He.
The agro-industrial holding may announce plans for re-domiciliation in the near future. “We are considering different options … As soon as we make the final decision, we will immediately publish it. While we are in the stage of internal discussions, informed Mr Kulchitsky.
Previously, Rusagro paid dividends twice a year – based on the results of the first half of the year and the year. Interim dividends in 2021 amounted to $119.7 million, the final ones were not paid. Dividends for the 2022 Board of Directors of Rusagro recommended also do not pay.
Read more in the publication of the application “Money” “The dividend payment is red”.
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