LONDON - Afarak Group SE (LSE: AFRK, NASDAQ: AFAGR), a specialist alloy producer, has announced a new dividend policy today. The company's Board of Directors has outlined a framework aimed at providing shareholders with a consistent return on investment. According to the policy, Afarak will distribute to its shareholders all funds that exceed the operational and developmental needs of the company as determined by the Board.
The new policy sets a target dividend payout ratio of a minimum of 10% of the group's annual EBITDA. This decision is part of a broader strategy to restructure the company's capital, which includes a reduction of share capital and share premium reserve. An Extraordinary General Meeting will be convened to discuss these changes, marking the first step towards creating a more flexible capital structure and enabling more efficient use of the company's funds.
This policy change comes as Afarak aims to ensure an attractive and consistent return for its investors by aligning dividend payouts more closely with the company's financial performance. The details of the dividend policy are included in the full statement released by the company.
The announcement is based on a press release statement from Afarak Group SE and is intended to inform shareholders and the market of the changes in the company's approach to dividends and capital management.
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