The Slovenia Times

Telekom shareholders to get same dividend as last year

Economy

Ljubljana - Telekom Slovenije shareholders have decided to distribute EUR 29.24 million for dividends, or EUR 4.50 gross a share, to be paid out on 2 August. The management proposed a EUR 3.5 dividend, but the shareholders backed the MDS small shareholder association's counter-proposal at Thursday's annual general meeting.

The MDS proposed a higher divided than the management but the same as was last year, arguing the company exceeded in 2021 the results from the previous year.

The MDS also argued that the state-owned national telecoms operator has almost EUR 55 million in statutory reserves in liquidity funds.

Telekom Slovenije is 62.54% owned by the state, which is managed by the Slovenian Sovereign Holding (SSH), and SSH holds another 4.25%.

The shareholders discussed a 2021 report on remuneration of executives and supervisors, but did not give it consent.

The company said after the shareholder meeting that "the remuneration policy at Telekom is in line with the legislation", but the company will further examine SSH's March recommendations and submit the adjusted remuneration policy to the shareholders for a consultative vote at the next AGM.

The shareholders moreover voted against the management continuing to buy Telekom shares. The approval so far in place was obtained at the June 2021 shareholder meeting.

Under the proposal submitted to the vote, Telekom would be able to buy own shares in the next 36 months, but to no more than 5% of the company's share capital.

The acquired shares could be used to exchange them for equity stakes in other companies as part of an acquisition strategy, for divestment to a strategic partner and for sale on the stock market.

The management and supervisory boards meanwhile received discharge of liability for 2021.

The shareholders also endorsed changes to the articles of association to accommodate for new lines of business Telekom is involved in.

Added to its registered activities were motor vehicle trade, pharmaceutical products trade, other health activities and non-residential social care for the elderly and disabled.

This is because Telekom is developing sustainable mobility solutions, and Telekom registering motor vehicles trade will allow buyers of electric vehicles to apply for co-financing.

The expansion to the health sector is meanwhile needed as Telekom provides ICT-telemedicine services to healthcare providers, including the rental of telemedicine equipment.

Since Telekom is buying small Slovenian company Actual I.T., chairman Cveto Sršen said that many synergies are expected from the purchase of the 100% stake.

Given Actual I.T.'s 2021 results, the acquisition would currently cost around EUR 20 million. However, the final price will be determined based on an agreed formula once all suspending conditions have been met and the Competition Protection Agency's approval obtained, he said.

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