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Minority shareholders ask Romgaz to pay higher dividends

Some of the shareholders of Romanian state-controlled gas producer Romgaz are unhappy with the dividend proposed by the company's management: RON 1.61 per share.

Calculated at the current prices of the company's shares (which has plunged with the rest of the market amid the coronavirus epidemic), the proposed gross dividend would bring investors a yield of 5.5%.

"Considering that we share the same views with other shareholders, who have invested in Romgaz taking into account the company's fundamentals and the dividends paid in the past, we ask you to review the proposal for dividends for 2019, so that it is at least at the level of the previous year", according to investment fund SIF Moldova, a shareholder with almost 2% in Romgaz, Ziarul Financiarreported.

In response to SIF Moldova, Romgaz says the dividend proposed is "prudent" and leaves the company enough funds for investments.

"We specify that although some investment projects may be delayed, this does not mean canceling them," Romgaz said in a press release.

The company's management believes that a prudent approach is needed, given the uncertainty that dominates the business, economic, fiscal environment as a result of the current context generated by COVID-19.