SDH proposed a dividend payment of EUR 3.5 per share, compared to initially no dividend payment proposed by the Management Board. Dividend yield is 7.1%.

Telekom Slovenije received a counterproposal by their shareholder SDH (Slovenski državni holding) regarding the dividend payment in 2020. SDH proposed a dividend payment of EUR 22.7m which translates into a dividend of EUR 3.5 per share. As a reminder, the Management Board initially proposed no dividend payment (EUR 30.16m to remain undistributed).

The newly proposed dividend translates into a yield of 7.1%, while the proposed ex-date is 17 June 2020.

The proposal is subject to approval at the GSM which will be held on 5 June 2020 (today). SDH currently holds a 4.3% stake in Telekom Slovenije, while the Slovenian State has a 62.5% stake. Therefore, it seems quite likely that the dividend counterproposal could be approved at the GSM.

As a reminder, in May, they received a counterproposal by the shareholder Zavod VZMD (Pan-Slovenian Shareholders’ Association) regarding the dividend payment in 2020. Zavod VZMD proposed a dividend payment of EUR 26.02m which translates into a dividend of EUR 4 per share. 

In the graph below, we are bringing you historical overview of the company’s dividends.

Telekom Slovenije Dividend per Share (EUR) & Dividend Yield (%) (2010 – 2019)

In April and May, the regional markets observed somewhat of a bounce back after all sectors observed a double digit decrease in March. To what extent have certain sectors recovered since April, find our in this brief article.  

For this we decided to look at the median share price performance of companies in our wider coverage which includes companies from Croatia, Slovenia, Romania, Serbia and Bulgaria.  

Since the beginning of April, of all observed sectors (14 of them) on average have observed a share price increase. Of those, 13 have observed a double-digit increases.  

Shipping companies recorded a sharp increase of 27.5%, after being the worst performing sector in March (-27.7%). In the observed period TNG observed a high share price increase of 36%, on the back of higher charter rates coupled with positive sentiment regarding shipping companies regarding the storage of oil. To read our blog regarding the tanker market click here. Utility comes next with a 23.8% increase, followed by Construction (+23.6%).

Tourism sector found its place near the bottom of the list, with still a solid 11.9% increase. Currently the regional companies are traded at a median P/E of 15.3 and EV/EBITDA of 8.8.

On the flip side, Infrastructure sector witnessed a 2.6% increase since the beginning of April.

Performance of Regional Companies by Sector Since April*

*Median share price performance of regional companies in our wider coverage

This should increase the capacity of the container terminal to 1.3m container units per year, and by the planned optimization of work processes at the terminal by an additional 200,000 units.

According to Slovenian media, Luka Koper signed construction contracts for pier extensions. To be specific, the works are divided into two phases. The first phase, which includes the construction of an operational shoreline 98.5 meters long and 34.4 meters wide, will be completed by the contractor in March next year. The second phase, the construction of hinterland storage areas on the south side of the pier of 24,830 square meters, will be completed in early 2022.

The contractor, Kolektor Koling with partners Grafist and Adriaing, is expected to start installing the pilots in September.

This will increase the capacity of the container terminal to 1.3m container units per year, and by the planned optimization of work processes at the terminal by an additional 200,000 units.

The Port of Koper also obtained European funds for this investment, which is worth EUR 45.6m. However, the expansion of the container terminal, which will extend to the north side of the first pier after 2022, has not yet been completed.