Arcelor-Mittal announces proposed new dividend policy
Payment of this dividend would be on a quarterly basis, an Arcelor-Mittal release said.
By PTI |
LONDON: Arcelor-Mittal, the world's leading steel company, on Wednesday announced its draft new dividend policy and reaffirmed its combined 2008 value plan and 2006 guidance.
The new policy provided a mechanism which would allow Arcelor-Mittal to honour its commitment of returning 30 per cent of net income to shareholders every year through an annual base dividend, supplemented by additional share buy-backs.
The Board of Directors proposed an annual base dividend of 1.30 US dollar per share. This base dividend has been designed to guarantee a minimum payout per year and would rise in order to reflect the underlying growth of the company.
Payment of this dividend would be on a quarterly basis, an Arcelor-Mittal release said.
In addition to this dividend, the Board of Directors of the company is proposing a share buy-back programme, tailored to match the 30 per cent distribution pay-out commitment of the group.
As a consequence, the sum of the annual base dividend and the share buy-back programme would each year represent 30 per cent of the annual net income. The proposed size of the share buy-back would be announced at the time of the annual results.
Arcelor Mittal reaffirmed its value plan on a combined basis, resulting in a targeted EBITDA for the combined company of 20 billion US dollars in 2008. The company also reaffirmed its pro-forma EBITDA guidance of 15 to 15.6 billion US dollar for 2006.
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