TeraPlast Group distributes 226 million RON worth of special dividends

The Board of Directors of TeraPlast shall propose to the shareholders’ approval special dividends distribution as well as free shares from the profit it will register until the end of March 2021.

The amount proposed for dividends is 226,6 million RON , which represents a gross dividend of 0,13 RON /share. At the current value of the shares it represents a record yield of 24 percent.

On the model of the acquisition of Somplast in December 2020, TeraPlast Group will continue its regional expansion and increase its market share through M&A. “Our interest is for companies that allow us synergies. We are looking at several criteria. First, the field of activity has to be similar or complementary to the ones TeraPlast Group activates on: recycling, flexible packaging, pipes and related products for water, gas and sewerage networks. Second, they must manufacture products with export demand, or which can dislodge imports from the domestic market. On the other hand, there must be companies that have high-performance production technologies. Financial performance is another key criterion. We are looking to companies that have similar indicators to those of TeraPlast and a low degree of indebtedness. These are cumulative conditions” stated Dorel Goia, Chairman of the Board of Directors.

The Group has ongoing investments of over 160 million RON this year, co-financed through state aid. TeraPlast estimated for the end of the year a comfortable gearing between 1 and 2 (total net bank debt/EBITDA). Therefore, the Group could enter bank loans in substantial amounts until a gearing of 3, common in the industry, which at the same time is a comfortable level for both the company and the shareholders.