You have 3 free articles left this month. Get your free Basic subscription now and gain instant access to more.

Bulgaria's Doverie to get no dividend for 2021 from Moldovan unit

Bulgaria's Doverie to get no dividend for 2021 from Moldovan unit Moldova

SOFIA (Bulgaria), June 10 (SeeNews) - Bulgarian diversified group Doverie United Holding [BUL:DUH] said that its indirectly majority-owned Moldovan subsidiary Moldindconbank (MICB) has proposed to skip dividend payout for 2021 due to the war in Ukraine.

Moldindconbank will ask its shareholders to vote on June 15 to retain last year's net profit of 716.4 million Moldovan lei ($37.6 million/35.4 million euro) as undistributed profit, Doverie United Holding said in a bourse filing earlier this week.

The proposal is based on a recommendation by Moldova's central bank that the country's banks withhold dividend payouts in 2022 to attenuate the negative economic effects of the ongoing military conflict in Ukraine, Doverie said.

In December 2021, the group's unit Doverie-Invest increased its stake in Moldindconbank to 78.21% after acquiring about 64% of the Moldovan lender in 2019.

In late May, Doverie United Holding proposed to its shareholders to skip dividend payout for 2021 and to allocate 97% of the net profit of some 1.1 million levs ($598,200/562,420 euro) to the company's compulsory and additional reserve funds.

Doverie United Holding, which is active in various sectors including healthcare, insurance, banking, retail trade and real estate, did not distribute dividend for 2020.

As at end-March, Moldindconbank was Moldova's second-largest lender by assets, with a 20% market share, and one of the two most profitable banks in the country, according to Doverie United Holding's first-quarter financial statement.

(1 euro= 20.212 lei)

Share this story
SeeNews in Brief

View our Newsletters