Ferronordic Machines intends to give notice of extraordinary general meeting
Press Release
Stockholm, 17 February 2017
The board intends to give notice to an extraordinary general meeting in Ferronordic Machines AB (publ) on 22 March 2017. The board will propose that the meeting resolve on a dividend on the company’s preference shares in an amount of SEK 55 per preference share, corresponding to a total dividend of SEK 27,500,000. The notice will be made in accordance with the articles of association on or around 27 February 2017.
At the annual general meeting in May 2016, it was resolved that no dividends should be paid on the company’s preference shares for the time being. In view of the weak market and the continuously uncertain economic situation in Russia, the board was of the opinion that it would be imprudent to decide on dividends already in May 2016 when the record dates for the payments only occur in October 2016 and April 2017. If the company’s cash flow and financial position would allow it, the board would instead convene extraordinary general meetings in October 2016 and/or April 2017 to resolve on potential preference share dividends.
The board subsequently convened an extraordinary general meeting in October, where it was resolved to pay dividends on the preference shares in an amount of SEK 55 per preference share, corresponding to a total dividend of SEK 27,500,000. The board was still of the opinion, however, that it would be imprudent to decide on the dividend payment in April 2017 already in October 2016. Should the board later find that the company’s financial position would allow a dividend in April 2017, the board would instead convene another extraordinary general meeting closer to the record date.
Despite the weak market and economic situation in Russia, the board is now of the opinion that the company’s financial position allows for a preference share dividend in April 2017.
No dividend shall be paid with regard to ordinary shares.
-------------------------
About Ferronordic Machines
Ferronordic Machines is the authorized dealer of in Russia. Ferronordic Machines has also been appointed aftermarket dealer for Volvo and Renault Trucks as well as dealer for Volvo Penta in certain parts of Russia. The company began its operations in 2010 and has expanded rapidly across Russia. The company is well established in all federal districts with approximately 70 outlets and almost 800 employees. The vision of Ferronordic Machines is to be regarded as the leading service- and sales company in the CIS markets. The preference shares of Ferronordic Machines are listed on NASDAQ OMX First North Premier. Volvo Construction Equipment and Terex Trucks in Russia. It is also the official distributor of Dressta and Rottne The company has appointed Avanza Bank AB as its Certified Advisor.
For more information, please contact:
Anders Blomqvist, CFO and Head of IR, Tel: +46 8 5090 7280 or pr@ferronordic.ru
This information is information that Ferronordic Machines AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication on 17 February 2017, 13:00 CET.
Tags: