Mittal family to receive $780 million dividend next year after Arcelor acquisition
28 September 2006
Mumbai: The L N Mittal family will receive about $780 million as dividend next year under the guaranteed minimum dividend announced by Arcelor-Mittal.
Under the new dividend policy announced on September 27, the first since the completion of the merger in August, the company''s president Lakshmi Mittal said Arcelor-Mittal would guarantee to pay $1.30 dollar per share from 2007. He also forecast combined group earnings of $20 billion by 2008, up $5 billion from 2006 earnings forecast.
The Mittal family would have a 43.5-per cent stake in the company on a fully diluted basis, ensuring a return on investment of $780 million.
Aditya Mittal, chief finance officer of Arcelor-Mittal, said that the new policy reflected the economic strength of Arcelor-Mittal and demonstrated the company''s confidence in the industry. Arcelor-Mittal said that it would return 30 per cent of net income to shareholders every year.
The company also offered a share buy-back if the annual base dividend of $1.30 per share fell short of 30 per cent of net income.