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Update on Lukoil Preferred ADRs
For those subscribers still holding Lukoil Preferred ADRs, here is more information on dividends given to James Passin from a Russian broker:
I just checked with ING Eurasia and found that LUKoil paid the rest of the preferred
dividend due for 1999 on December 5th and Euroclear has already paid
dividends to holders of ADRs on LUKoil preferred shares. The '99 preferred
dividend is $0.62/share ($1.24/ADR) at the curent exchange rate. The record
date for '99 LUKoil preferred dividend is April 24, 2000.
LUKoil preferred looks particularly strong on the basis of the expected 2001 dividend, which we
estimate at $1.80/share ($3.60/ADR). This expectation is based on the fact
that LUKoil consistently pays 10% of the net profit of the holding company
(unconsolidated) to its preferred shareholders (77 mln shares). According
to 9 month 2000 LUKoil holding (unconsolidated) profit $1,118 mln the
accrued dividend to LUKoil preferred shareholders in 9M00 is $1.46/share
($2.92/ADR) - already adjusted for the effective X-rate . Based on this we
believe that the full year 2000 preferred dividend will be $1.80/share - a
23% dividend yield, which makes quite a strong case for LUKoil preferred.
The dividend was paid this year only in December, although the company AGM
approved the payment deadline of Nov 1. The delay was due to some beuaracratic
inefficiency required to work out a tax rebate to one shareholder. The
dividend withholding tax of 15% should be deducted at the source by Russian
procedure. However, with some paperwork in place, shareholders from
countries with a double taxation treaty with Russia can have the tax rebated. However, only one shareholder currently does.
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