Clariant withholds annual dividend payout over Covid-19 uncertainty

Clariant has revealed that due to the Covid-19 pandemic it is withholding the distribution of its regular dividend.
Instead of the originally planned distribution of CHF 0.55 (52c) per share dividend by way of a par value reduction, the available earnings will be carried forward.
If the economic environment and the financial condition of the company allow, an extraordinary distribution may be proposed at next year’s annual general meeting with a view to compensate the lack of an ordinary distribution this year.
Hariolf Kottmann, executive chairman ad interim of Clariant, said: “At a time when our society is confronted with an uncertain and unprecedented economic environment, the board of directors believes in taking a balanced approach towards distributions to shareholders.
“In this way, the board intends to secure additional liquidity for the company while still fulfilling its commitment to shareholders.
“Clariant’s commitment to long-term value creation remains upright and its strategic transformation program is in full progress. Therefore, the board aims to resume Clariant’s attractive regular dividend policy when the situation allows for it.”
The board of directors has also confirmed the proposal for an extraordinary cash distribution of CHF 3 per share (€2.85), subject to the successful closing of Clariant’s Masterbatches business.
If approved by Clariant’s shareholders, the extraordinary distribution of about CHF 1 billion (€950, 855,292 million) will be paid out following the closure, which is currently expected to take place later in the financial year.
Clariant’s annual general meeting will be held on June 29.