January 25 (SeeNews) - Bosnian hydro power producer Hidroelektrane na Trebisnjici [BANJ:HETR-R-A] failed to get its shareholders' approval to its proposal to issue new shares which would more than double its current equity capital as most of the shareholders abstained from voting, the company said on Tuesday
Out of all shareholders present at the January 21 meeting, 10.82% voted in favour, 12.28% voted against and 76.89% abstained, HET said in a bourse filing.
Some 94% of HET shareholders were present at the meeting.
HET said earlier this month that it plans to offer to investors a new share issue of 435 million marka ($255.1 million/222.4 million euro) that would more than double its current equity capital of 385.2 million marka. The plan has drawn nationwide attention due to speculation for potential loss of government control over the electricity producer.
However, HET director Gordan Mishelic said that the government of Bosnia's Serb Republic planned to invest in HET's proposed capital increase through its power utility Elektroprivreda RS (ERS) and state-owned funds in order to preserve a controlling stake in the company.
The sole purpose of the planned capital increase was to secure additional financing for the construction of the Dabar hydro power plant, which is fully owned by HET, Blagoje Shupic, ERS director for economic affairs said earlier this month.
Currently, state-owned ERS owns 65% of HET's share capital, the Serb Republic's Pension Reserve Fund's management company owns a 10% stake and the entity's Restitution Fund owns 5%. The remainder is distributed among smaller shareholders, data from the Serb Republic-based Banja Luka Stock Exchange showed.
The Serb Republic is one of the two autonomous entities that form Bosnia and Herzegovina. The other one is the Federation.
(1 euro = 1.95583 marka)