Endesa dividend distributed in almost half the value of the company – The País.com (Spain)

Endesa dividend distributed in almost half the value of the company – The País.com (Spain)

Rain dividend Endesa. The company, which had announced a dividend of 8.253 million from the sale of its assets to Enel Latin America, announced that also provides other payment six euros per share (6352.5 million) on the same date, which will be October 29. With this, the dividend to be paid that day will rise to about 14,600 million, an absolute record in the Spanish business history. Almost all that money, 92% will go to the accounts of Enel, the Italian firm that controls the electric Spanish.

In addition, the company announced for the first half of 2015 a payment of 800 million as ordinary dividend against 2014 results and a higher amount in 2015 and 2016 Thus, the company distributes dividend almost in half the value of the company, whose size will be drastically reduced with ongoing operations. Electrical worth more than 32,000 million traded, but its value is expected to fall below the 20,000 million when the record becomes effective dividend.

In a significant event sent this morning to the National Securities Market Commission Securities, Endesa explains that the distribution of additional dividend of 6352.5 million “aims to re-leveraging [debt] of the Company to optimize its financial structure.” Endesa asked to borrow money to pay the dividend, which will be partly financed by a loan of 4,500 million euros to 10 years at a fixed rate of 3% and a credit line of 1,000 million euros a year Euribor plus 0.6%, both firmly committed by Enel Finance International NV, a subsidiary of the Italian group based in the Netherlands. The rest of the 852 million remaining to cover all the agreed dividend will be funded through other liquidity instruments available to society.

This dividend is in addition to the dividend that has been submitted for approval the next AGM following the sale of assets in Latin America, although both are subject to the execution of such sales and would be paid on the same date, October 29 cited, according to the company.

New dividend policy

But the dividends will not stop there. The company added that in light of the high cash flow provided by Endesa, has decided to adopt a new dividend policy for more generous as shareholders period 2014-2016. the company wants this to be a complaint with the sale by Enel of just over a 22% stake through an initial public offering (IPO).

So, the distribution will be proposed an ordinary dividend for the results for the year ended December 31, 2014 for a gross amount of 0.76 euros per share exercise, which would distribute a total of about 800 million, to be split into two payments cash (January and July 2015).

It has set a target that the dividend per ordinary share to be agreed to distribute the financial year 2015 is at least 5% higher than in 2014 (which would remain about 840 million the number of shares) and, in turn, that the 2016 dividend is at least 5% higher than in 2015 (which would give 882 million). The rate of two payments

will be maintained, in January and July each year.