Khlibprom AGM To Vote On Share Capital Increase April 11

At their AGM on April 11, Khlibprom (HLPR) shareholders are scheduled to vote on an additional share issue that will increase the company’s share capital to USD 150 mln. The company will issue 59 mln new shares at a nominal price of about USD 0.002. The funds from the issue are to be invested in the development of the company’s business. Two weeks ago, Khlibprom published a USD 45.2 mln development plan for 2007. The company will spend USD 21 mln on expanding its bread making capacity, USD 6.3 mln on modernizing its existing bakeries, USD 4.4 mln to build a new grain mill, USD 2.4 mln to improve its chain of shops and USD 9.9 mln to refinance its local bonds. USD 30 mln of this amount will be provided by the International Financial Corporation (IFC) and the remaining sum will be provided by the company’s shareholders, Khlibprom’s holding company. Universal Group is currently in talks with the IFC for the sale of a 5-10% stake in the company. Universal Group also controls Galnaftogaz (GLNG: HOLD) and Universalna Insurance (SKUN).