City and MSC allegedly deceive HHLA CEO Titzrath in business dealings
🚪 Hey there! 🤘
In an unexpected twist, the Port of Hamburg Beteiligungsgesellschaft SE—a partnership between the city of Hamburg and the renowned shipping titan MSC—is gunning for a reduction in the dividend for HHLA, their port logistics company. They've proposed slashing the payout from 16 cents per A share to a more modest 10 cents in an application for the Annual General Meeting on July 3. The management and supervisory board, led by Angela Titzrath, had proposed a higher dividend of 16 cents, but the council is having none of it.
📢 The Power Struggle 💥
The management and supervisory board of HHLA have hinted at opposition to this move, but they're up against some serious muscle. The Port of Hamburg Beteiligungsgesellschaft SE owns a staggering 90.4% of HHLA's shares, and given their sizable chunk, it's expected that the proposed dividend reduction will clear the hurdle at the meeting, regardless of the board's stance. It's a tough hand to play, but the dice seem to be loaded.
💸 The Bigger Picture 📈
By cutting the dividend payout, the Port of Hamburg Beteiligungsgesellschaft SE is aiming to boost HHLA's equity and improve liquidity—a move that would better equip them to make future investments and strengthen the company's financial standing in the long run. If this countermotion passes, the amount distributed to shareholders will drop drastically—from a projected 11.6 million euros, the payout will be slashed to around 7.2 million euros. So, while stockholders may be disappointed, the company's financial health might just get a much-needed boost.
❓ Fascinating Facts 🌟
Last year, HHLA showed promising signs after a lackluster 2023, with revenue climbing by 10.5% to approximately 1.6 billion euros and EBIT jumping by 22.7% to 134.3 million euros. The improvements can be partly attributed to the successful performance of their rail business, although the container handling sector remained steady at around 5.7 million standard containers.
stay tuned for more updates on HHLA's thrilling journey!💪🏽😎🔥
In the corporate power struggle, the Port of Hamburg Beteiligungsgesellschaft SE, a significant player in the industry, finance, and business, is pressuring HHLA to reduce their dividend payout, aiming to reinforce their equity and improve liquidity for future investments.
The proposed reduction, if passed, could result in a significant dip in the distributed amount to shareholders, while potentially boosting HHLA's financial health in the long run amidst a considerable surge in revenue and EBIT in the previous year.
