Ukrnafta’s March 22 EGM agenda includes additional share issue

The agenda of Ukrnafta’s (UX: UNAF UK) March 22 EGM was updated yesterday to include a vote on an additional share issue, according to Interfax. Shareholders will decide on issuing 13,557,127 additional shares (roughly ~25% stake) publicly or privately. The move would increase shareholder equity by UAH 3.39 mln. According to the announcement, the issue would be carried out at a price not lower than the market. Antonina Davydenko: The news could be positive for Ukrnafta in the long run given that the additional capital is used to boost investment. We expect the additional issue to be private and allow Ukrnafta’s major shareholders, the government (via Naftogaz of Ukraine) and Privat Group, to preserve the ownership. Given that Naftogaz is currently cash-strapped, it is probable that instead the government will contribute shares of Ukrtatnafta, in line with previously announced plans to create a vertically integrated oil structure, with potential further placement on a western stock exchange.