London: Steel tycoon L N Mittal's family will receive about $780 million payout in 2007 under the guaranteed minimum dividend announced by Arcelor-Mittal on Wednesday.
Speaking to investors for the first time since the merger was completed in August, Mittal, the company's president, said that Arcelor-Mittal would guarantee to pay $1.30 per share from 2007.
On a fully diluted basis, the Mittal family would have a 43.5 per cent stake in the company.
He also told investors that the combined group would achieve earnings of $20 billion by 2008, a $5 billion improvement on 2006 earnings forecast.
Aditya Mittal, chief finance officer for the combined company and son of L N Mittal, said that the new policy reflected the economic strength of Arcelor-Mittal and demonstrated the company's confidence in itself and in the steel industry.
Arcelor-Mittal said that it would return 30 per cent of net income to shareholders every year.
If the annual base dividend of $1.30 per share fell short of 30 per cent of net income, the company would conduct a share buyback until that level of payout was reached.
A national daily on Thursday quoted Aditya Mittal as saying that the merger between the two companies was going "beautifully."
"It's much better than any of us could have expected. Together we are a much stronger organisation. There is a real buzz, an excitement about the place," he said.
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