Ukrrichflot OKs Tenfold Charter Fund Increase

At their EGM today, Ukrrichflot (FLOT: N/R) shareholders approved a tenfold charter fund increase to USD 5.46 mln. Subscription will take place in two stages: (1) Dec. 10 to 14 and (2) Dec. 17 to 19. During the first stage, existing shareholders will be able to subscribe on a pro-rata basis; the second stage will be open. The ex-rights date is December 10. The reason for the issue was stated as to increase working capital. Inna Perepelytsya: As with the recent Stakhaniv Wagon share issue, shareholders will be required to subscribe directly at the company or through an authorized representative at Ukrrichflot’s office. All other details were approved as we stated in yesterday’s Share Issue Alert. The second major item on the agenda, consideration of strategy for 2008-2012, was postponed. We believe this is linked to negotiations with Sevmorzavod (one of the major shareholders of which is Petro Poroshenko), which were not concluded before today’s EGM. Watch for news at the next EGM, scheduled for December 7 at Sevmorzavod’s plant in Sevastopol.