The shareholders approved the allocation of 2021 profit of HRK 45.6m into the retained earnings, meaning no dividend payment in 2022. The approval to the Management Board of the Company for the acquisition of treasury shares was also given.
Arena Hospitality Group held its GSM yesterday, and the resolutions of the meeting have been published. Of note, two things should be mentioned. Firstly, the Company decided to put their 2021 profit of HRK 45.6m into retained earnings. This would mean that for now, there would be no dividend payments in 2022. However, it should be noted that the Company still retains the right to pay out dividends after August this year, as until August they are prohibited by law due to them receiving COVID-19 govt. support. At this point, however, this is a decision the Company is yet to make/might not even make. It should also be noted that during 2020 and 2021, the Company approved no dividend payments, meaning the last time they did pay the dividends out was in 2019.
The second thing of note is the decision on granting the approval to the Management Board for the acquisition of treasury shares. The approval is based on several conditions: they are authorized to acquire the treasury shares in the next five years; the total number of shares that can be acquired cannot exceed 10% of the Company’s share capital at the time of the acquisitions; the purchase price for the treasury shares cannot be above 10% or below 10% the average market price achieved during the previous day.
Furthermore, in the year that the acquisition of shares is made, the Company shall contribute a part of its profits to the reserves for these shares, so that the Company’s share capital and reserves do not become lower than what is required by law for the Company to have. Finally, the Company can either use these treasury shares through employee reward programs, or other treasury shares disposal programs or withdraw them, effectively decreasing the share capital of the Company. To read the resolutions in full, click here.
