BIMAS has announced it will offer a gross dividend of TRY 34.2m (TRY 0.45 per share) at an extraordinary general meeting on 10 November 2009, with distribution planned to start on 23 November. Note that the company already distributed a gross dividend of TRY 60.7m from 2008 income (TRY 114.2m) on 27 May 2009. Provided that the offer is accepted, the cumulative pay-out ratio from 2008 earnings will increase from 53% to 83%.
We welcome BIM's decision to distribute an additional dividend in 2009 as the move demonstrates the management's confidence in the firm’s cash generation capability related to ongoing investments in Turkey and Morocco. The proposed cash dividend implies a 0.74% dividend yield based on yesterday's closing price.