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Mol board to propose that no dividend be paid on 2009 profit

The board of Hungarian oil and gas company Mol will propose to shareholders at the company's April 29 AGM that no dividend be paid on Mol's 2009 post-tax profit of HUF 253.02 billion (€953.38 million), the company reported on Monday evening.

The board will recommend that the company's entire 2009 profit be placed in profit reserves.

Mol paid no dividend last year. The company last paid dividend, of HUF 85 billion or 40% of after-tax profit, from 2007 profits in 2008.

Mol's board also announced on Monday evening that foreign institutional investors held 25.7% of company shares at the end of 2009, up from 24.1% at the end of 2008, while domestic institutional investors held 8.3% of company shares at the end of 2009, down from 10.3% at the end of 2008.

Mol had seven shareholders with voting rights in excess of 5% at the end of last December, when it held 7.1% of all shares as treasury shares.

Mol's board also announced on Monday evening that board members László Akar, Miklós Kamarás and Ernő Kemenes said they would resign with effect at the company's April 29 AGM, adding that the Mol board would propose that former National Bank of Hungary governor Zsigmond Járai, László Parragh, president of the Hungarian Chamber of Commerce and Industry MKIK and Roman Martin, president of the Czech company CEZ be appointed to succeed the departing board members.

CEZ holds 7.34% of MOL shares, but MOL has an option to buy the shares at any time until January 23, 2014 at a price of HUF 20,000 per share. (MTI-ECONEWS)