Vedomosti is reporting that report up to 50% of 2017 net profit of Novorossiysk Commercial Sea Port (NMTP) may be paid to shareholders, with the company looking at calling a shareholder meeting to decide, after payment was delayed in conjunction with the April 2018 arrest of Ziyavudin Magomedov, the co-owner of major #NMTP stakeholder, Summa Group.
Although no meeting has yet been called, Vedomosti is reporting that NMTP’s board of directors will consider calling an Extraordinary General Meeting of shareholders on Monday, July 23, with the agenda to include discussion including NMTP’s 2017dividend.
NMTP has not yet paid a 2017 dividend after its bank accounts were frozen in conjunction with the arrest and prosecution of Ziyavudin Magomedov in April. Magomedov, who was arrested on embezzlement charges relating to stadium construction, is co-owner of ‘Summa’ group which has a 25% stake in NMTP. In the immediate aftermath of the arrest NMTP CEO, Sultan Khazalievich Batov, stated that an “EGM regarding dividend payment would be convened immediately after NMTP’s bank accounts are released.”
Vedomosti is reporting that the freeze on NMTP’s bank accounts was lifted on June 29, enabling consideration to progress, citing an unnamed source in the Russian government as telling the newspaper, “NMTP should pay 50% of its profits for 2017.”
For FY 2017 NMTP posted a Net Profit of $439 million, on FY 2017 Revenues of USD $900 million. Major Russian investment bank, VTB Capital has previously reported, following late 2017 discussions with NMTP Management, that USD $100-150 mln would likely be paid out as dividends.