BASF: operational reorganization and reduced dividend
(CercleFinance.com) - On Thursday the German chemicals group BASF, in search of a new lease of life in recent months, announced a restructuring plan and its intention to reduce its dividend by 33%.
BASF states that it will only pay an annual dividend of E2.25 per share from next year, compared with E3.40 to date, equivalent to a total payout of E2bn per year.
In addition to this coupon - which should represent a total payout of E8bn to its shareholders over 2025-2028 - share buy-backs will be added, which should total around E4bn, the company points out.
On a strategic level, BASF has announced that its activities in chemicals, materials, industrial solutions, nutrition and health will henceforth be considered as 'core businesses'.
Conversely, its activities in environmental catalysts, battery materials, coatings and agricultural protection are to become independent entities.
Markus Kamieth, Chairman of the Management Board, explains that he wants the chemical group to become a partner helping its customers to prepare for their 'green transformation', and to create value from the activities that will be discontinued.
BASF, which already sold off its oil and gas activities this year for two billion euros, has already indicated that it is preparing to sell its decorative paints division in Brazil.
In Frankfurt, the share fell over 2.7% in the wake of these announcements, by far the biggest loser on the DAX index.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
BASF states that it will only pay an annual dividend of E2.25 per share from next year, compared with E3.40 to date, equivalent to a total payout of E2bn per year.
In addition to this coupon - which should represent a total payout of E8bn to its shareholders over 2025-2028 - share buy-backs will be added, which should total around E4bn, the company points out.
On a strategic level, BASF has announced that its activities in chemicals, materials, industrial solutions, nutrition and health will henceforth be considered as 'core businesses'.
Conversely, its activities in environmental catalysts, battery materials, coatings and agricultural protection are to become independent entities.
Markus Kamieth, Chairman of the Management Board, explains that he wants the chemical group to become a partner helping its customers to prepare for their 'green transformation', and to create value from the activities that will be discontinued.
BASF, which already sold off its oil and gas activities this year for two billion euros, has already indicated that it is preparing to sell its decorative paints division in Brazil.
In Frankfurt, the share fell over 2.7% in the wake of these announcements, by far the biggest loser on the DAX index.
Copyright (c) 2024 CercleFinance.com. All rights reserved.