Synthos on a high

Synthos SA, the rubber maker controlled by Polish billionaire Michal Solowow, surged to an 11-month high after proposing a record dividend. The manufacturer of synthetic rubber used for production of tyres will return to its owners a total of US$315 million even as its profit fell 39%. The proposal is “a positive surprise” and “implies a juicy yield of 12.9% on yesterday’s close,” Piotr Drozd, a Warsaw-based analyst at Wood & Co., said. “An average dividend-per-share of about 0.4 zloty could be sustainable going forward.” Synthos also announced a new dividend policy, saying its pay-out may be higher than consolidated profit if net debt does not exceed earnings before interest, tax, depreciation and amortization, or Ebitda. If net debt is more than 2.5 times Ebitda, management will not recommend a dividend, it said.