PJSC Mechel : Mechel Reports Decisions of its Board of Directors

Rhea-AI Summary

Mechel PAO (NYSE: MTL) announced critical decisions made by its Board of Directors on May 24, 2021. The board recommended no annual dividend for ordinary shares, while proposing a dividend of 1.17 rubles for each preferred share. The net profit allocation for 2020 was divided, with 162.3 million rubles designated for preferred share dividends and the remainder of 7.4 billion rubles left unallocated. A shareholder meeting is scheduled for June 25, 2021, to finalize these decisions and elect board members.

Positive

• Election of experienced members to the Board of Directors could strengthen governance.
• Allocation of 162.3 million rubles for preferred shareholders may indicate a commitment to shareholder returns.

Negative

• No dividends for ordinary shares could raise concerns among common shareholders.
• Leaving 7.4 billion rubles of profit unallocated may signal a lack of clear growth strategy or reinvestment plans.

MOSCOW, RUSSIA / ACCESSWIRE / May 25, 2021 / Mechel PAO (NYSE: MTL, MOEX: MTLR), a leading Russian mining and metals company, announces the decisions made by its Board of Directors at a meeting held on May 24, 2021.

The Board of Directors made the following recommendations to the general meeting of Mechel PAO's shareholders:

• not to pay an annual dividend with respect to ordinary shares;
• to pay an annual dividend of 1.17 rubles per one preferred share.

The list of persons entitled to receive dividends for 2020 will be made based on the data in the Mechel PAO Shareholders' Register as of July 13, 2021.

The Board of Directors also recommended the general meeting of Mechel PAO's shareholders to approve dividing net profit from 2020 as follows:

• to allocate 162,345,590.55 rubles for payment of dividends for listed preferred shares;
• to leave the remainder of profit (7,408,477,471.33 rubles) unallocated.

The Board of Directors also recommended to the general shareholder meeting:

• to elect to Mechel PAO's Board of Directors:
  • Igor V. Zyuzin
  • Oleg V. Korzhov
  • Georgy G. Petrov
  • Alexander N. Kotsky
  • Alexander D. Orishchin
  • Victor A. Trigubko
  • Alexander N. Shokhin
  • Irina N. Ipeeva
  • Yuriy N. Malyshev.
• to confirm Energy Consulting AO as auditor of Mechel PAO.

The annual general meeting of shareholders will be held on June 25, 2021 by absentee balloting.

Filled vote bulletins may be mailed to 125167, Moscow, Krasnoarmeiskaya St, 1, Mechel PAO.

Bulletins in electronic form may be filled at the following Internet address: https://lk.rrost.ru

***

Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com

***

Mechel is an international mining and steel company. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.

***

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.

SOURCE: PJSC Mechel

View source version on accesswire.com:
https://www.accesswire.com/648958/PJSC-Mechel-Mechel-Reports-Decisions-of-its-Board-of-Directors

FAQ

What were the key decisions made by Mechel's Board of Directors on May 24, 2021?

The Board decided no dividends for ordinary shares and a 1.17 rubles dividend for preferred shares.

What is the scheduled date for Mechel's annual general meeting in 2021?

The annual general meeting of shareholders will be held on June 25, 2021.

How much profit from 2020 did Mechel allocate for dividends?

Mechel allocated 162.3 million rubles for dividends on preferred shares and left 7.4 billion rubles unallocated.

What implications does Mechel's decision not to pay ordinary dividends have for shareholders?

This decision may create dissatisfaction among ordinary shareholders concerned about returns.

Who are the proposed members for Mechel's Board of Directors?

Proposed members include Igor V. Zyuzin, Oleg V. Korzhov, and others.