Azovstal Shareholders Will Consider Canceling Treasury Stock

At Azovstal’s (AZST: BUY) AGM scheduled for June 23, the company’s shareholders will consider reducing AZST’s charter fund by 25.39% via cancellation of 1, 427.5 mln of treasury shares. Previously, Azovstal accumulated this treasury stock following its merger with Markokhim coke maker in late 2005 and Trading House Azovstal in 2006. Eugene Cherviachenko: The market has already reacted to the news with a 30% jump in AZST’s stock price, to USD 0.65. If the treasury stock cancellation is approved by the AGM, this would mark another step toward the company’s higher corporate governance standards, in our view, as this would allow AZST’s minority shareholders to increase their stakes in the company.