Azovstal AGM Votes To Merge With Trading House.

Earlier today at their AGM Azovstal’s (AZST:Suspended) shareholders approved the issuance of 1.964 bln additional shares which will increase the company’s charter fund by 54%. The new shares will be swapped for shares of Trading House Azovstal in order to merge it with the steel mill. Minority shareholders will not be allowed to subscribe for the additionally issued shares. Trading House Azovstal has 44% stake in AZST.  Azovstal’s representatives did not disclose the price to be offered for the shares of minority shareholders that voted against the issue, nor did they disclose what will happen to the 44% stake which previously belonged to the trading house. Concorde Capital:  The results of the AGM were fully in line with our expectations as described in our Analyst Notebook of May 5. Depending on whether or not AZST annuls the shares that it will receive from the trading house, the dilution effect on minority stakes will be either 8% or 35%.