Bulgaria's Bianor plans 2.9 mln euro capital increase

The company plans to convert into capital part of its retained earnings from previous years by issuing 5.73 million shares of 1 lev in par value apiece, which will be distributed to its existing shareholders, Bianor said in a press release. Investors will receive five new shares for each share they hold in the company.

The capital hike is part of a series of actions aimed at boosting trade in the company's shares and improving liquidity, Bianor said.

The proposal will be put to the vote at an extraordinary general meeting of shareholders on September 18, where shareholders will also decide on the expansion of the company's board with three new members.

In June, Bianor raised some 8 million levs in a capital increase, in which a total of 37 investors, including three institutional funds, subscribed for 470,697 company shares.

The company's equity capital is divided into some 1.15 million shares with a nominal value of 1 lev apiece.

As of 1510 CET on Thursday, shares in Bianor traded 15.56% higher at 20.80 levs on the BaSE market of the Bulgarian Stock Exchange.

(1 euro = 1.95583 levs)