Zygmunt Solorz, the founder and majority owner of Cyfrowy Polsat, has proposed raising the dividends paid to the company’s shareholders to at least PLN1.8 billion (€418.3 million) in total for the next three years.
In particular, this includes that an annual dividend set at a level of at least 4% of the average capitalisation of the company from December 2018, namely around PLN0.93 per share.
In a statement to investors the company says: “In the opinion of Mr. Zygmunt Solorz, Cyfrowy Polsat Group, which has been built for a number of years by joint effort and with significant support from minority shareholders, has today solid foundations represented by sound assets and recurrent cash flows. Simultaneously, the very good relations with the banks and Cyfrowy Polsat’s bondholders, which have been built for many years, grant the company an access to financing of its further development. Furthermore, Mr. Zygmunt Solorz informed that he has received repeated suggestions from the minority shareholders of Cyfrowy Polsat concerning distribution of the company’s profits, which has been on a relatively low level since the moment of acquiring Polkomtel company back in 2014. According to Mr. Zygmunt Solorz, the dividend based on the above assumptions shall represent a sound compromise between fair and recurrent distributions to the company’s shareholders and its further deleveraging”.
Cyfrowy Polsat’s management board will now review the existing dividend policy and complete the verification process next month.