Alchevsk Iron & Steel AGM Votes To Increase Share Capital 2.4 Times

At its AGM yesterday, Alchevsk Iron & Steel’s (ALMK: BUY) shareholders voted to increase its share capital by 139.2% to USD 510 mln through a public additional share issue at a par value of USD 0.02. The company, which is 95% controlled by the Industrial Union of Donbas (IUD), will use the financing to upgrade equipment. The subscription period for the issue is June 25-July 24, 2007. The ex-rights date is set for June 25, 2007. In addition, the shareholders voted not to pay dividends, but directed 5% of 2006’s profits into its reserve fund and the rest to developing production. Eugene Cherviachenko: Our target price adjusted based on the new number of shares is USD 0.04 per share.