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MVM shareholders approve HUF 12.5 bln dividend

Shareholders of the nearly entirely state-owned Hungarian utility company MVM approved a proposal to pay a HUF 12.5 billion dividend on 2010 profit at the company’s annual general meeting.

MVM did not say how much unconsolidated profit was in 2010.

Last year, MVM paid a HUF 35.1 billion dividend on 2009 profit.

Shareholders approved MVM's consolidated report showing after-tax profit of HUF 21.8 billion and total assets of HUF 876.3 billion. Profits were HUF 5.7 billion under the target, but the company paid HUF 6.1 billion on an extraordinary energy sector tax.

Shareholders elected CEO Csaba Baji chairman of the board, replacing Csaba Faragó, who resigned to pursue other activities.

MVM's new management, appointed last year, has reviewed all of the groups contracts and investments and taken decision on ending loss-making ones, the company said.

MVM's board decided early in 2011 to pull out of a power plant joint venture in which it had already invested HUF 18.5 billion, Econews reported earlier. MVM stood to lose a further HUF 10-15 billion if it continued with the project.