The General Assembly of shareholders of Viro sugar factory did not accept the Management’s proposal to withdraw the company’s shares from the Regulated Market of the Zagreb Stock Exchange, while the proposal for the payment of a dividend of 20 kuna per share from retained earnings from 2011 was accepted.
The proposal for the decision to withdraw from the Regulated Market of the Zagreb Stock Exchange was made so that Viro could fully prepare for the new business conditions that the sugar factory will face after Croatia’s accession to the European Union, as stated in Viro’s announcement on the Zagreb Stock Exchange.
From July 1, 2013, the Croatian sugar industry will be able to produce a maximum of 192,877 thousand tons of sugar, and will have to pay 12 euros per ton of sugar into the European budget, which amounts to 2.3 million euros annually.
With lower production and additional costs expected in the EU, Viro unexpectedly lost more than 10,000 tons of quota annually due to the Ministry of Agriculture’s decision on the distribution of production quotas, which will cause a loss of 380 million kuna over the seven-year period, said Viro’s CEO Ċ½eljko Zadro.
Staying on the Zagreb Stock Exchange, given the state of the capital market, represents a significant direct and indirect cost for Viro, which will have an additional negative impact on the company’s business results, emphasizes Zadro.
The General Assembly of the Virovitica sugar factory accepted the proposal for the payment of a dividend of 20 kuna per share from retained earnings from 2011, totaling 27.7 million kuna. The dividend will be paid no later than January 26, 2013.
