The shares of the chemical fertilisers producer Azomures Targu-Mures rose 28% during yesterday's trading session on the Bucharest Stock Exchange as a result of recently released news of an upcoming capital increase operated by the company.
Azomures plans to increase its share capital by 29 million dollars through contributions in cash by its shareholders. The chemical plant's capital could therefore reach almost 1,400 billion ROL, that is 3.7 times higher than at present.
Shareholders will be able to buy shares of the plant at a price equal to the face value per share, 1,000 ROL, and almost threefold lower than the price the shares are trading at on the Stock Exchange.
The capital increase will be operated in order for the majority shareholder to comply with its obligations, but it is not clear yet to what use the funds therefrom resulted will be put. At the end of the first half, Azomures held not less than 7 million dollars in bank accounts, while the company's investment programme for the entire year totals 13 million dollars.
"The operation will secure the necessary funds for us to carry out the investment programme. We will know more about this following the presentation of the documents on October 1 and the subsequent debate over those papers," Angela Podina, Azomures representative, on Wednesday said.
One of the effects of the capital increase will be a decrease in the stake the Privatisation Authority (APAPS) holds in the company. The State owns 10.5% in Azomures, but may not subscribe.
In case all the other shareholders of the company subscribe, APAPS' stake will drop to 3%. Moreover, early this month the possibility of the Authority taking over the photosensitive materials division was brought up.
The majority shareholder of the company is Turkey-based Transworld Fertilizers Holding, which holds a little more than 50% in it, while Broadhurst investment fund holds 20%. vlad.nicolaescu@zf.ro
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