Board’s Resolution on Dividend Policy
Rusal, a leading aluminum industry player, has confirmed its decision to withhold dividend payments for the first nine months of 2023. This resolution was passed by the company’s Board of Directors, with a majority vote of 11 ‘For’ and 1 ‘Against,’ following a recommendation from the company’s Management Board.
Context of the Decision and Shareholder Dynamics
This decision aligns with previous actions, including a vote against dividends for 2022 at a recent annual meeting, despite an interim dividend of $302 million paid for the first half of 2022. The move comes in the wake of a request from Rusal’s largest minority shareholder, Sual Partners, for an extraordinary shareholders’ meeting to discuss dividends for the January-September 2023 period. The company plans to communicate more details about this decision to its shareholders by around 17 November 2023.
Dividend Policy and Financial Agreements
Rusal’s established dividend policy typically includes payments representing 15% of the company’s adjusted EBITDA, factoring in dividends from Norilsk Nickel and in accordance with its loan agreements and financial covenants.
