State electricity carrier Transelectrica to up dividends nine times in Romania
Romania state-owned electricity carrier Transelectrica wants to give nine times higher dividends to its shareholders this year, of around EUR 18.4 million, on account of the record profit for last year. Dividends will be 89 percent of the net profit Transelectrica posted in 2011, which was ten times higher than the net profit in 2010. Last year, the Government made it mandatory for state companies to give 85 percent of profits to the state budget.
This year, Transelectrica proposed a dividend of RON 1.1 per share to shareholders, resulting in a yield of 6.7 percent, given the current price of Transelectrica's shares on the Bucharest Stock Exchange – RON 16.3. This proposal will be on the agenda at the shareholders' general meeting on April 26 and if approved, payment of dividends should start in August this year.
Romania's Economy Ministry owns 73.6 percent in Transelectrica and is currently selling a 15 percent stake in the company through a Secondary Public Offering. Investors have until March 27 to buy shares in Transelectrica, at prices varying between RON 14.9 per share and RON 19.2. This would value the company at between EUR 37 million and EUR 48 million.
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