Telefonica Czech: May Buy Back Shares On Top Of Dividend Payout
February 17 2012 - 12:09PM
Dow Jones News
Telefonica Czech Republic AS (BAATELEC.PR), a unit of Spain's
Telefonica SA (TEF), Friday said it may buy back up to 10% of its
shares in addition to its just-announced cash dividend.
"On top of the 40 koruna per share cash payment we're asking the
AGM for a generic stock buyback of up to 10% of shares," company
Chairman Luis Antonio Malvido said in a conference call.
The company proposed a CZK40 ($2.1) per share dividend,
comprising an ordinary dividend of CZK27 per share from 2011
profit, and a payout of CZK13 per share to reduce capital because
of an excessive cash position, he said.
Earlier Friday, the company posted a fourth-quarter net profit
of CZK2.87 billion, beating market expectations of CZK2.20 billion
and up from CZK1.91 billion a year earlier.
"At this stage we don't plan to do [the buyback], but we want to
keep ourselves flexible," Malvido said, adding the buyback could be
leveraged.
"To give the best shareholder remuneration...we're starting with
a share capital reduction and at this stage we're just evaluating
the 10% [buyback]," he said, adding the company would provide more
details after the AGM later this year.
If the share purchase plan takes place it would be in the second
half of the year, Malvido said, adding it would be limited to
shares trading on the secondary market.
-By Sean Carney, Dow Jones Newswires; +420 222 315 290;
sean.carney@dowjones.com
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