PRAGUE (Thomson Financial) - The annual general meeting of Czech generic drug maker Zentiva approved a 7.4 crowns per share dividend on 2007 profit, although a resolution to appoint a Generali PPF Holding representative to the board failed.
Thursday's AGM approved the proposed dividend, which will have a record date of July 4 and payment date July 18, as well as authorisation for Zentiva's board to buy back up to 10 percent of its shares if needed, which is an item voted on every year.
In a statement, Zentiva also said a resolution to appoint Generali PPF representative Marcel Dostal to the board, as a non-executive director, was not supported by a 'sufficient number of votes present and was not adopted'.
Insurance joint venture General PPF, together with Czech investment group PPF, holds a 19.2 percent stake in Zentiva, and PPF last month announced its intention for a 950 crowns per share takeover bid.
Zentiva's board recommended in April that Dostal become a non-executive member, although the group later said the recommendation could come under 'further consideration' following PPF's announcement of an intended offer on May 2.
Sanofi-Aventis is Zentiva's largest shareholder with a 24.9 percent stake, followed by PPF, which said in a statement following the AGM that voting by Sanofi-Aventis did not enable the election of its board nominee.
'Through this stance from its position of controlling shareholder, Sanofi-Aventis unambiguously showed it has no interest in enabling other fellow shareholders to co-operate on activities to benefit of Zentiva,' the statement said.
'Depending on the results of the voluntary takeover bid we want to contribute actively to managing of the company,' it added.
PPF is expected to make an official offer this month, although analysts do not expect it to raise much interest among investors unless the offer is raised.
The expected offer, though, has breathed new life into Zentiva's share price, which closed at 1,025 crowns on Thursday, or around 10 percent higher since the intended offer was announced.
Investment group J&T is the group's third largest shareholder, with more than 6 percent, and media have reported the group is looking to sell to PPF, although spokespeople for the groups declined comment on Wednesday.
Management has a 5.9 percent stake the Zentiva. jason.hovet@thomsonreuters.com +420 222 191 109 jrh/sal COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.