Chimimport may pay dividends on common stock for the first time in 10 years


Chimimport proposes dividend distribution on common shares after the preferred shares conversion on 16 June 2016. The proposal is to be discussed at the annual shareholders’ meeting, scheduled for July 27th, 2016, according to filings with the Trade Registry.

Dividend policy and history

Chimimport is the biggest holding structure on the Bulgarian Stock Exchange. Up to now it had a policy of no dividends apart from a guarantied dividend on its preferred stocks issued in 2009 and to be converted on June 16th 2016 to common stock. The company paid 9% dividend on the preferred stock aka BGN 0.1998 per share. Now, the Chimiport’s management is proposing dividends on common stock. No immediate details available on the disitrbution parameters as the AGM’s documents are yet to be registered with the Trade Registry after which they become effective.

Market reaction

Nevertheless, the market already reacted to the news and sent the common stock price up 11% in early morning trading on 15 June 2016. Trading with preferred stock was suspended on June 14th due to the conversion process. All preferred stock is to be converted to common stock effective June 16th 2016 but to carry a partial dividend from 2016 profits (from Jan 1st to June 15th, 2016), to be distributed in 2017.

2015 Chimimport FY results

Chimimport booked BGN 40.3m unconsolidated net profit in 2015, down 3.2% y/y. Out of it, the company is to distribute BGN 17.78m of it to preferred stock in 2016.

Check all ELANA Trading equity research reports