Kazakhtelecom announced preferred shares dividends payments

Dias KabyltayevDecember 07, 2016

On December 5, 2016, the Kazakhtelecom Board of Directors made decision accordingly the date of 2016 - preferred shares dividend payment. This news, in our opinion, is neutral both for the Company and for its shareholders, as the payment of a fixed size of the dividend on the preferred shares is a prerequisite for their purchase. We maintain our "Hold" common shares of Kazakhtelecom and estimate the fair value of one common share in the T13412 level.

On December 5, 2016, the Kazakhtelecom Board of Directors made decision accordingly the date of 2016 - preferred shares dividend payment.  Thus, the date of dividends payment start is scheduled on December 12 this year. The amount of dividend per preferred share amounted to 300 tenge

Our opinion

This news, in our opinion, is neutral both for the Company and for its shareholders, as the payment of a fixed size of the dividend on the preferred shares is a prerequisite for their purchase. In our opinion, more questionable now is the chance of common dividend payment taking place. Given the disappointing results of the Company for the 9M2016, the question of dividend payment on common shares remains open. We maintain our "Hold" common shares of Kazakhtelecom and estimate the fair value of one common share in the T13412 level.