June 19, 2013 / 11:02 AM / 4 years ago

Poland demands KGHM pay higher dividend of 1.9 bln zlotys

LUBIN, Poland, June 19 (Reuters) - Poland, under pressure to keep a lid on the budget deficit, demanded a 1.9 billion zlotys ($597.24 million)dividend payout from Europe’s No.2 copper producer KGHM on Wednesday, a fifth more than what the miner proposed.

The stock dropped as much as 4.5 percent after the announcement. Analysts polled by Reuters had expected Poland to push for a payout of 13 zlotys per share, or 55 percent of KGHM’s stand-alone net profit of 4.87 billion zlotys.

The company proposed 8 zlotys per share.

A representative of the Treasury Ministry, which oversees state assets, proposed the higher dividend of 9.80 zlotys per share at KGHM’s annual meeting. The shareholders are expected to approve the proposal as Poland holds a controlling 32-percent stake of the miner.

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