The Board of Directors of TeraPlast SA intends to submit to the shareholders’ approval the proposal for the distribution of quarterly dividends based on the interim financial statements for the period January-September 2020. The preliminary proposal considered by the Board of Directors is the distribution of dividends between 44 and 48 million lei. The final proposal, however, will be entered in the documents of the Ordinary General Meeting of TeraPlast shareholders, in accordance with the applicable legal provisions and will also contain the total amount proposed for distribution.
The April 2020 General Meeting of Shareholders approved the increase of TeraPlast’s share capital and the granting of free shares. Thus, on the payment date, August 19, 2020, the company’s shareholders received one free share for every 3.3 shares held.
The TeraPlast Group registered in the first half of 2020 a turnover of 486.6 million lei, increasing by 17% compared to the first half of 2019 and above estimates. The Group’s EBITDA increased by 49% in the first six months of 2020, as compared to the same period in 2019, to 52.7 million lei.
The amount will be composed of the distributable reserves set up in previous years and the net profit for the first nine months of 2020. The proposal will be subject to approval at the Ordinary General Meeting of Shareholders, to be held on 27 November 2020.
“TeraPlast had good results in the first half of the year, despite the difficult period that the business environment is going through. In April, the GSM approved the rewarding of shareholders with free shares, for preserving the group’s liquidity in the context of the uncertainty of the evolution of the economic situation. It is time to give shareholders what is theirs, to reward the trust and support they have shown us. We respect our commitment to bring them added value, and this will materialize through the distribution of dividends that we will submit to the OGSM approval from November 27, 2020,” said Dorel Goia, chairman of the Board of TeraPlast.