MHP to pay USD 0.75 in DPS by end-March

Обзоры по компаниям и отраслям 17.03.2016 The board of directors of Ukraine’s largest poultry producer MHP (MHPSA, MHPC LI) approved dividends of USD 0.7529 per share, totaling USD 80 mln, the company reported on March 16. Dividends will be paid on March 31 to shareholders on register as of March 29. The intention to pay USD 80 mln in dividends (+60% yoy) was first announced on March 10, when the company reported its 2015 financials. Roman Topolyuk: Cash outflow of USD 80 mln in the form of a dividend distribution in 2016 will not have negative consequences for MHP’s liquidity position, which we expect to generate USD 130 mln in free cash flow during the year. Expected refinancing of USD 249 mln in current debt and an available facility of USD 100 mln will support the company’s financial position. MHP’s 2020 Eurobonds trade at a spread to sovereign of 258 bps, which is very much close to the historic average of 266 bps. We reiterate our “hold” recommendation on the bond.