SARAJEVO (Bosnia and Herzegovina), November 22 (SeeNews) – Bosnian power utility Elektroprivreda BiH [SAJ:JPESR] and coal miner Banovici [SAJ:RMUBR] plan to recapitalise their newly established joint venture TTU Energetik with a combined 8.3 million marka ($4.5 million/4.2 million euro), the power utility said.
Elektroprivreda BiH will invest 6.6 million marka while Banovici will contribute 1.7 million marka, in correspondence to their shareholdings in TTU Energetik, Elektroprivreda BiH said in a statement on Monday.
The funds will be used for the purchase of land, buildings, equipment and intellectual property, the reconstruction of existing facilities and the overhaul of current equipment. The company's share capital will also be increased from its current 10,000 marka by a sum equal to the value of total investments, EPBiH said.
TTU Energetik, based in Tuzla, will produce transport equipment. EPBiH holds an 80% share in TTU Energetik, while Banovici controls the remainder.
A final decision on the recapitalisation will be brought by the shareholders of the two state-controlled companies.
RMU Banovici is one of the biggest coal mines in the Federation, one of the two autonomous entities that form Bosnia and Herzegovina. The other one is the Serb Republic. Elektroprivreda BiH also operates in the Federation and is the largest of Bosnia's power utilities.
(1 euro=1.95583 marka)