Bosnia's RZR Ljubija seeks shareholders nod to cancel cap hike plan

Shareholders of RZR Ljubija will vote on the proposed cancellation of the capital increase plan at a meeting scheduled for September 23, the company said in a bourse filing on Wednesday.

In August, RZR Ljubija's shareholders in August approved a plan to issue 50,777,428 new ordinary shares of 1 marka in par value each - an amount equal to the company's existing capital of 50,777,428 marka ($26.05 million/26 million euro). The new share issue would have been placed with American-Canadian Consortium SE-GEDC, thus making the New-York based company the biggest shareholder of RZR Ljubija.

Currently, RZR Ljubija is majority owned by Bosnia's Serb Republic, which holds a 64.9% stake through its Share Fund, a 9.99% stake through its Pension Reserve Fund and a 4.99% stake through its Restitution Fund.

RZR Ljubija's shares last traded on the Banja Luka Stock Exchange on August 10, closing 2.02% higher at 1.01 marka.

The Serb Republic is one of two autonomous entities that form Bosnia and Herzegovina. The Federation is the other one.

(1 euro = 1.95583 marka)