Bogdan completes restructuring via share issue

At their EGM on December 5, Bogdan Automobile Plant (LUAZ) shareholders completed the restructuring process of the company’s assets via an additional share issue. The company issued 998,892 shares at UAH 0.85 per share. At their August EGM, Bogdan shareholders voted to go ahead with the share issue in order to increase the company’s charter fund by 33%. Of the new capital, 90% was planned to be contributed in the form of assets in four related automobile companies (see our automotive industry report of April 11, 2008 for details). Alexander Romanov: Bogdan planned to issue 1.1 bln new shares, allowing minority shareholders (10%) to subscribe on a pro-rata basis. But, as LUAZ traded at a 70%-78% discount to the subscription price over the subscription period, most minorities, naturally, did not use their option to subscribe. As a result of the additional share issue, LUAZ’ charter fund grew 30.0% (vs. the planned 33.1%). The new number of LUAZ shares is 4,326.89 mln.