OREANDA-NEWS. The Norilsk Nickel Board of Directors has recommended a dividend payment for 9M07 of R108 ($4.38) per share. This implies an annualized dividend yield of 1.9% and a payout ratio of 16%, based on the Alfa Bank analysts' estimate of the company's 2007 net income. The company's dividend policy stipulates payment of 20-25% of IFRS net income.

The announced payment more than doubles last year's interim dividends of $2.09 per share. However, the annualized dividend yield, which was 2.2% for 9M06, is almost the same. Taking into account last year's  share buyback, the total cash return last year was 5.5%. The interim dividends are subject to approval at the EGM scheduled for December 21, and the record date for dividend payment and EGM participation is November 13.

The BoD also approved the informational materials for the spinoff of Norilsk's energy assets, which must be approved by shareholders. All relevant information, as well as the spinoff schedule, should be published in EnergoPolyus' investment memorandum on November 14. The spinoff is subject to approval at the EGM scheduled for December 14. The record date for EGM participation (but not for assets allocation) was October 26. On November 5, the company also announced that the BoD had decided not to cancel 7.5 mln treasury shares but to sell them on the market before December 17. The proceeds from the sale will be an estimated at $2.3 bln based on Norilsk Nickel's RTS closing price on Friday, November 2. According to the company, the cash from the share placement will be used to repay loans. "We consider all this news as NEUTRAL, since the decline in our target price for the company after the additional share placement will be almost fully compensated for by the debt repayment and dividend payment. We presume that if the share sale does indeed take place, the shares will be placed at a 3-5% discount to the market price," the experts suggest.