Sava Re Receives EUR 1.05 DPS Counterproposal

Zavod VZMD proposed a dividend payment of EUR 1.05 per share, compared to initially no dividend payment proposed by the Management Board. Dividend yield is 6.8%.

Earlier today, Sava Re received a counterproposal by the shareholder Zavod VZMD (Pan-Slovenian Shareholders’ Association) regarding the dividend payment in 2020. Zavod VZMD proposed a dividend payment EUR 16.27m or EUR 1.05 per share, compared to initially no dividend payment proposed by the Management Board. The newly proposed dividend translates into a yield of 6.8%.

The proposed ex-date is 19 June 2020. The counterproposal is subject to approval at the GSM which will be held on 16 June 2020.

VZMD stated that they believe that it is appropriate and inevitable that the Company distribute in dividends at least the promised, guaranteed and previously approved dividend or share of the generated distributable profit. As the proposer, they believe that the Company is capable of paying such a dividend to its shareholders without adverse impacts or otherwise compromising its plans.

As a reminder, Sava Re’s strategic plan for 2020 – 2022 states that the company will ensure its shareholders stable growth in dividends (on average by 10% annually) therefore distributing between 35% and 45% of Sava Insurance Group’s profits. Last year, Sava Re paid out a dividend of EUR 0.95 per share which, translated into a yield of 5.6%.

Given the current situation regarding the Covid-19 pandemic and the implications and uncertainties which come with the situation, we do not see the counterproposal being approved on the GSM.

Dividend per Share (EUR) and Dividend Yield (%) (2014 – 2019)

InterCapital
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Category : Flash News

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