SARAJEVO (Bosnia and Herzegovina), March 16 (SeeNews) – Bosnian state-controlled coal miner Banovici [SAJ:RMUBR] said on Wednesday it will increase its capital by 21.4 million marka ($12.1 million/10.9 million euro) by converting retained earnings into equity.
Banovici will issue, without a public offering, 213,830 free ordinary shares, with a nominal value of 100 marka each, to its existing shareholders, it said in a statement.
A general meeting of shareholders approved the move on March 14.
According to the Sarajevo bourse, the company's share capital amounted to 69.4 million marka on December 31, 2015, while total capital, including reserves and retained earnings, totalled 104.03 million marka.
Banovici said earlier it plans to begin the construction of a 350 MW thermal power plant (TPP) in mid-2016. The company signed a strategic cooperation agreement and a contract on the engineering, procurement and construction of the power facility with China's Dongfang Electric Corporation in November. The facility is valued at some 400 million euro ($442.8 million).
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.
(1 euro=1.95583 Bosnian marka)