MOSCOW, June 2, 2009 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, announces its Board's dividend recommendation.
On June 2, 2009, Mechel's Board of Directors recommended to the annual general shareholders' meeting annual dividends of 5.53 rubles per one ordinary share (approximately $0.18 per ADR)* for the 2008 fiscal year. Also Mechel's Board recommended annual dividends of 50.55 rubles per one preferred share (about $1.6)*.
The total dividend the Board recommended to the annual general shareholders' meeting would amount to 2,301,977,219.85 rubles (approximately $75 million)* for ordinary shares. The total dividend for preferred shares is 7,014,162,053.25 rubles (more than $228 million). This dividend payment amount is in line with Mechel OAO's Charter provision regarding preferred shares.
According to the Board's decision, dividend payment will be in cash by wire transfer not later than December 31, 2009.
The record date for the Mechel's share, preferred share and ADR-holders entitled to participate in the annual general shareholders' meeting and to receive dividends is June 4, 2009. The annual general shareholders' meeting will be held on June 30, 2009, at the address: 1 Krasnoarmeyskaya St, Moscow, Russian Federation.
"Unfavorable conditions on the world and Russian financial and product markets, which we are witnessing since October 2008, brought about changes in our dividend policy for common shares. In the current situation we consider it unjustified to withdraw significant funds from our operational cash flows. Yet, having respect for our shareholders' rights, we don't think it is appropriate to completely refuse from dividend payments," commented Stanislav Ploschenko, Mechel OAO's CFO.
* According to the Russian Central Bank exchange rate of 30.7441 RUR/$ as of June 2, 2009.
Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat and electric power. Mechel products are marketed domestically and internationally.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.