May 23 (SeeNews) - Bulgarian steel panel radiators maker Korado [BUL:4KX], part of Czech Korado Group, said on Tuesday it will distribute a dividend of 0.26 levs ($0.15/0.13 euro) per share for 2016.
In March, Korado Bulgaria said it plans to distribute a gross dividend of 0.26 levs per share for 2016, a 44.4% increase over the previous year. The dividend payout of a total of 2.28 million levs represents 78% of the company's 2016 net profit.
In 2016, Korado Bulgaria's net profit rose to 2.9 million levs from 1.9 million in the previous year.
The company has also proposed to issue an additional share for every two existing shares held by Korado Bulgaria's shareholders,
Vojtech Chamek, CEO of Korado Group said in a statement.
The proposal will be discussed at an extraordinary shareholders meeting of Korado Bulgaria on August 9.
"Each shareholder [...] will receive one share for every 2 shares in Korado Bulgaria. Those will be ordinary shares with equal voting rights and dividends for each shareholder. The total number of Korado Bulgaria shares will increase from 8.78 million to 13.17 million, and I believe that this will have a positive effect on both the liquidity of the shares and their price," Chamek added.
Chamek also said that Korado Group has authorised him to increase the free float of Korado Bulgaria shares from 17% to 33%, which will be gradually implemented.
Korado Bulgaria was registered in 1998, when the company acquired 98.2% of the originally German-Bulgarian steel radiators production plant in Strazhitsa, in northern Bulgaria. The plant exports its output to the markets of Romania, Ukraine, France, Hungary and Bosnia.
Korado Bulgaria's shares were traded 1.71% lower at 8.56 levs as of 15:05 CET on Tuesday on the Sofia bourse.
(1 euro = 1.95583 levs)