The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, at its meeting today recommended that the Extraordinary General Meeting of Shareholders (“EGM”) approve a dividend payment of RUB 5,050.5 million, or RUB 39 per share (RUB 13 per Global Depositary Receipt), from the Company’s unallocated net profit as of 31 December 2015.
The Board’s recommendation was made after reviewing PhosAgro’s financial and operating performance for the first nine months of 2016, including the Company’s interim consolidated IFRS financial statements, which are due to be published on 17 November 2016.
PhosAgro Board of Directors member and CEO Andrey Guryev said: “Despite the current situation on the global fertilizer market, the Company remains in a solid financial position. While we continue to implement our social programmes, as well as strategic initiatives and investment projects aimed at increasing the value of PhosAgro and strengthening its leading position in the global mineral fertilizers sector, our stable cash flows mean we can continue to pay dividends.”
The EGM, which will take place by absentee ballot, has been scheduled for 16 January 2017, and the record date for shareholders eligible to participate in the EGM is 21 December 2016. The Board has recommended that the record date for shareholders eligible to receive dividends be set as 27 January 2017. The EGM will also consider changes to the Company’s charter related to new regulations in Russian Federation corporate law governing large transactions and interested party transactions, which will come into force on 1 January 2017.
At the Board of Directors meeting the Company’s Management Board was re-elected without any changes, the Corporate Governance Code and a new edition of PhosAgro’s Insider Information Policy were approved, a report on implementation of the Company’s Information Policy in 2016 and plans for 2017 was presented, and a report on the monitoring of the management of key risks in Q3 2016 was reviewed.
The Board took note of reports by the Committee Chairs on the results of their work during Q3 2016, approved Mikhail Abramets as the Director for Internal Audit, approved several related party transactions, approved the terms & conditions of an additional agreement to the PhosAgro contract with Reestr regarding the maintenance and custody of a shareholder register, and set the amount to be paid for services to the Company’s RAS auditor, LLC FBK.